If you took a pulse of the youth all over the country and even abroad, most want to move to California if they could.So yes let’s do illustrative math.

This was to just serve as an illustration and gain familiarity with my analysis - I would account for a few other things in a real life scenario. 

But the word 'HELOC' is traditionally associated with 2nd mortgages on primary residence, so I think, in addition to making some relationships with smaller banks in your community, ask them if they grant homeowners secure lines of credit with the homes as collateral in first position.Remember, there is a thing called a CD Line of Credit - for example, you put 40k in a CD(this is a terrible investment, by the way, but I am doing this for illustration) and then you tell the banker you want a line of credit secured by the CD. 

Here is an infographic illustrating this here in California: https://infogram.com/california-bands-together-1g43mn7yrl062zy2.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

It sounds like a lot of leads but most investors are outsourcing cold calling just like their direct mail.The image below illustrates the main points I'm touching on.

There are more threads here around BP that illustrate that those programs are not worth the money they charge.  

Setting proper expectations takes effort (sometimes a lot of effort).Let me try to illustrate this with my own experience.  

Assume the worst in your projections for a period, like a quarter, if nothing more than to illustrate that you know what the worst case might be.

Perhaps that is why you never saw the value in it.Policy illustrations show the "NET" death benefit.