Move in again as your main residence.

You must actually move in to reset the clock and you may need good evidence to prove this if challenged or audited. There is no minimum time period in the legislation either.

If you rent it to tenants and they move out and you wait 2 months then move in it would only be your main residence from that 2 month period. This is unless you had lived their prior to the tenants moving out. If was your main residence and the tenants had lived there for exactly 6 years and then you waited 2 months to move in then there may be issues as the property had earned income. The legislation isn't clear on this, but ATO publications suggest that the first 6 years would be CGT free but the next 2 wouldn't.

You do need equity to set up a LOC. Max LVR is around 80% usually, some 90%

So if you had a property valued at $100,000 and a loan of $90,000 you could not get a LOC.
But if you had a $50,000 loan then you could get a $30,000 or a $40,000 LOC depending on the bank etc.

A LOC is new borrowings, but undrawn initially.

You claim them in the year they are incurred.

If you mean where on the forms it would be on the investment property schedule.

To set up a LOC you need equity

If they are the lender then they would actually be the mortgage manager, This would mean the loan is mortgage insured no matter what the LVR. This may not be a concern but if you are aiming for multiple properties it could restrict you.

Rates will depend on the size of the loan some majors around 5.85%

Also you could do this on your own too.

If it operates like a redraw that concerns me even more. That would result in a mixed purpose loan so how do you distinguish the interest deductible.

Also make sure they are authorised to give this sort of advice – AFSL licence or an authorised rep of a licence holder.

Also what are their fees?

Very difficult to find a lender willing to allow vendor finance of 20%.

In Australia if you borrow for investment or business related purposes the interest is generally deductible. This includes credit card interest.

But with a credit card often there will be a mixture of purchases so you may have to apportion any interest claimed.

Trust Magic is a great book and I would recommend it over Renton's for beginners.