.:  Are you talking about creating a first 50% of the note and a second for 50% of the Note and sell the first one? 

@Kevin Connauton most PMCs won't touch this type of renting due to all the additional headaches and liability.We second contacting PadSplit.

A second problem related to “over leverage” is a lack of contingency funds.  

Depending on how long it takes you to save up the amount, you might want to also allow for inflation on that amount for your continued savings.[2]   Read Rich Dad poor dad.[3]   Think about getting a second job - possibly a temporary job - save a 100% of the money.Just my 2 cents.

I second Ryan's advice.  

The community, coaching and support really are second to none, and I always gain valuable insights from the masterminds and every interaction I have with them.  

The first question is, can I use a second home mortgage (10% down and lower interest rate) for this. 

Also check into bylaws to see if you are allows a second freestanding dwelling on your property.

The second home is under contract to sell for the same price, 257k. 

Quote from @Lisa Albright: Hi All,Newbie here, just a quick question we are building an addition on our second home, we have a primary residence, and two rental properties.