People love to make landlords and/or STR operators the "bad guy" and ban the short term rentals (see Boston, Cambridge, Somerville) but when they make AirBNB the bad guy, they (gen pop and politicians) dont address the real problem which is no new construction and major limitations in zoning or redevelopment.There is a way to have both STRs and a healthy housing market, but the problem is everytime someone tries to modify a dwelling or build a development all the NIMBYs pop up and kill it and then complain that rents and prices are going up. 

@Vic VeeramaniBeing able to utilize passive losses depends on your income level and your level of participation.You are eligible to use some passive losses from rental activities if you show active participation and your modified adjusted gross income is below $150,000

You have to be careful when setting this up to not over fund the paid up additions rider, otherwise the policy would be considered a MEC or Modified Endowment Contract, which is now a fully taxable policy.

You might want to modify these offers a bit to fit your needs as well.

Changing a neighborhood: You can "modify". 

I've a HELOC pending on my primary residence and planning on using it for a modified BRRR out-of-state.  

As such, it can be modified if both parties agree.

If I understand you correctly, you are advising a sort of modified brrrr strategy - modified since these houses are owned already but strategically pulling out a conservative amount of debt.The houses are mostly C class but some border on B-.

They are supposed to modify their confirmation and add your full name and email.

Also, if HML use standard loan documents that can generally not be easily modified during the loan as you may be able to do with Private Money (especially friends/family).