@Jrdub wrote:
So, it sounds like I can use as an unsecured loan and claim the interest as a business expense for the rental property. Do I have that right?
I believe so, yes, You make the election to treat the loan as unsecured under section 10T(o)(5) simply by declaring the interest as a business expense, you don't do anything special to notify the IRS of the election. You still need to be able to follow the tracing rules, and the HELOC is not eligible to be deducted as schedule A itemized mortgage interest, now or in the future.
