it looks good but that will depend on your estimates.

Also, there is an IRS memorandum which explains in great detail why a transaction of this type was considered acceptable when the applicable laws and legal doctrines were applied to it.

@Jose Pena I can tell you on the phone but you have to be really control freak....lolI have accounting background plus my first bachelors degree in engineering so I understand numbers and extremely detail oriented.

Estimating repairs and reserves for capex is the most difficult thing, because you can make a bad deal look good and or vice versa.What I have learned from doing a lot of rehabs, is that every house needs a complete do over every 30-40 years, inside and out.

I would recommend using Rentometer as their estimates are pretty accurate.

I estimate a total of $500 for the event since we did the cleanup.

One thing I have difficulty is estimating potential rehab cost estimation (as well as any big property issue that I should know of).

I may have come across some by another name but let me look at the details. 

There are several details on a HELOC the 2 biggest with PENFED is max of 400k and max of 3 properties owned.

To me it looks like you have to add in hypothetical numbers (estimated monthly repair costs, vacancy rate, etc..).