When my brother paid towards the monthly 'mortgage', he got a greater % of the house, but according to the contract he could pay nothing and effectively live rent free for 20-30 years.

I believe there are different Heloc's out there but under normal circumstances paying down any amount on a Heloc, would indeed make funds available for use again.My question is dealing with Heloc's, and I don't mean to take the focus away from your scenario @Scott Ellis, but I wonder if using a Heloc has the same effect on your DTI and credit score as any other debt product?

There is like 5 steps for move in and move out and if you mess up either one of the 5, the tenant can go after you for treble damages.If you've got rentals then it's a business and I find the Security Deposit is very effective to keep my places in decent shape. and it ain't that complicated to handle a Security Deposit.

I don't think there is any detectable effect now.News of it at http://www.paloaltoonline.com/news_features/storm98/paw_print.html

Just getting that first how will start the snowball effect.

It is very effective if you keep it going.

He said if the 20k was used for a repair then it would effect my dti but if it was for a improvement it would not.

If you desire to change their rental terms let them know, and as rule of thumb as each state or county,s regs may be different, give them 90 days from the purchase of the properrty until your nee rental agreement comes into effect.  

By "my own," I mean I am my own Client.Is operating as an REA in the Bay Area an effective way to generate starting capital with which to invest?

Paying off your credit card debt will have the most obvious positive effect on your bottom line.