This is because it was purchased with a primary intent to be a good home for our (at the time) young family and not purchased with the intent to be a great rental property..Del Sur is a great area. 

Real estate broker'', hereinafter referred to as broker, any person who for another person and for a fee, commission or other valuable consideration, or with the intention or in the expectation or upon the promise of receiving or collecting a fee, commission or other valuable consideration, does any of the following: sells, exchanges, purchases, rents or leases, or negotiates, or offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of any real estate, or lists or offers, attempts or agrees to list any real estate, or buys or offers to buy, sells or offers to sell or otherwise deals in options on real estate, or advertises or holds himself out as engaged in the business of selling, exchanging, purchasing, renting or leasing real estate, or assists or directs in the procuring of prospects or the negotiation or completion of any agreement or transaction which results or is intended to result in the sale, exchange, purchase, leasing or renting of any real estate.This really couldn't be any more clear. 

Now that's a seller's market, I am still buying but with the intent to sell them as fast as I can as soon as I add value to them.How are you "trying" to find deals?

If the property you have free and clear was purchased recently with the intent of flipping it would not qualify for a 1031 exchange anyway. 

I'm sure it's hard to keep emotions out 100%, but my intention is to treat this like a business.

So make sure your lender knows your intentions with the cash out proceeds.

It's kind of ridiculous and laughable, or incredibly bold if intentional, for the company to include such a contradictory statement immediately following the required Texas disclosure.To recap:Company is currently operating as an unlicensed lender across multiple statesThey require an owner-occupied home to secure an equity line of credit for a consumerThey do not consider the borrower's Ability to Repay, which might violate federal lawTheir hybrid 'Construction HELOC' (my term) fails to meet several TX requirements:Requiring a Deed of Trust violates terms of TX consumer construction loansBorrower doesn't control money drawn from the LOC, which violates TX requirement: "The owner requests advances, repays money, and reborrows money."

I intentionally used the term for @David Greene . 

@Michele Wax interesting - I’ve always heard that here has to be an intent to use it as a primary residence for the first year, but haven’t really heard anything about the nitty-gritty of the loan.

My business partner is all about getting as much capital and he keeps telling me that it doesn't matter because your are always at least 1 house ahead but I am struggling to wrap my head around the numbers)I was HML for the first house purchase $25,000 and plan to withdraw it after the 3rd house closes and refinance goes through.House 1:Purchase $25,000Apprasied: $65,000LTV 80%Max Refinance $52,000Payment: $430 (15 YR @ 5.7%)Rent $850House 2: (Duplex)Purchase $40,000Apprasied: $75,000LTV 80%Max Refinance $60,000Payment: $487 (15 YR @ 5.4%)Rent $1300House 3:Purchase $20,000Apprasied: $40,000LTV 80%Max Refinance $32,000Payment: $260 (15 YR @ 5.4%)Rent $600After these (3) deals are done I can then pull my $25K out and have $59,000 of gained business capital to keep doing the process with...but I suffer on monthly cashflow.House 1 $25 ----> $52House 2 $52 - $40 = $12 + $60 (refinance) = $72House 3: $72 - $20 = $52 - $25 (My money) = $27 + $32 (refinance) = $59kGained Business Capital = $59,000Monthly Rent = 2750Monthly Debt = 1177Gross Cashflow = 1573The other thought would be to set end business capital goal with the intent to increase gross cashflowHouse 1: Purchase $25,000Apprasied: $65,000LTV 69%Max Refinance $45,000Payment: $365 (15 YR @ 5.7%)Rent $850House 2: (Duplex)Purchase $40,000Apprasied: $75,000LTV 53%Max Refinance $40,000Payment: $324 (15 YR @ 5.4%)Rent $1300House 3: Purchase $20,000Apprasied: $40,000LTV 80%Max Refinance $25,000Payment: $203 (15 YR @ 5.4%)Rent $600After these (3) deals are done I can then pull my $25K out and have $59,000 of gained business capital to keep doing the process with...but I suffer on monthly cashflow.House 1 $25 ----> $45House 2 $45 - $40 = $5 + $40 (refinance) = $45House 3: $45 - $20 = $25 - $25 (My money) = $0 + $25 (refinance) = $25kGained Business Capital = $25,000Monthly Rent = 2750Monthly Debt = 892Gross Cashflow = 1858