Hello all, I've loved reading all of the valuable information here and have decided to post something of my own since every situation seems to be different.I'm currently a WA resident that bought a short sale 3 years ago with a decent amount of equity in it now.

Hello my name is Rory and I am a Chicago native currently residing in Seattle Washington.

So if you take a $10k HELOC to buy a rental property, why not just use 100% of the cash flow from the rental property to pay back the HELOC as quickly as possible.In the end you will have your primary residence with a low payment and good equity in the rental.

I have a rental in Texas so this would be a second residence in a sense and may require more down.

The bank didn't shut the door, just said "Let's see where the appraisal for the LOC comes in on your primary residence."

Is mortgage insurance on primary residences based on the appraised value of the home or the purchase price of the home?

I also reside in Austin.

Here is what I was referring to - it applies when your residence is converted to rental use:http://www.irs.gov/publications/p551/ar02.html#en_US_2010_publink1000257022

Owning some real estate free and clear, even your residence is another topic we touched on in case you needed to free up some cash for an emergency.

This used to be his personal residence before he moved to Tennessee due to his work.