Did you deposit the reserve money with someone else??

🚨 What You Didn't Know About Federal Tax Liens Could Kill Your Real Estate DealThink that NFTL showing up in your title search means "game over"?

Reserves or not. 

Save up for sufficient down payment and reserves. 

Account for a hefty reserve for holding costs and your rehab.

Lock a tight buy box by submarket and vintage, underwrite to in-place income first, then model stabilized rents with conservative expenses and a true cap-ex reserve.

It helps keep liquidity free for repairs or operating reserves while still allowing you to move quickly on a deal.

I make $62k/yr and have $24k in liquid assets ($11k in investable assets after setting aside my desired 5 month reserve fund).My long-term plan has always been to buy a duplex to house hack, but I came across a cheap 2-unit condo listed around $110k that looks updated and move-in ready.

Using 15% for simplicity ≈ $25,875Total federal tax in this simplified example: ≈ $59,284The key point: depreciation doesn’t vanish.

kind of risky if your loan goes bad your still paying on your heloc.however its how most lenders operate they have a LOC somewhere or like banks that get federal funds then they lend for more than it cost to borrow.I would think  yoiu would need fairly big line to make this owrth the risk and time etc