The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

You get stuck with higher costs across the board and that 1 extra unit doesn't get you more scale than a quad. on the lending side I agree with others - DSCR is best option.  

And possibly convert extra space(dinning room ect) in to bedrooms. 

But seems to me that anyone doing STR does not benefit much for that really marginal extra penny.

If you’re confident in getting that closet added and the risk of the attic conversion being compliant is manageable (perhaps even in the eyes of your lender or insurance), it could definitely be worth the extra rent and value boost.Is the juice worth the squeeze?

I have also run the scenario of putting extra principle payments into the conventional mortgage, but we cannot put away as much, because we have to bank for large purchases down the road.This spreadsheet takes into account that my wife takes a drop in income in the next few years to care for babies (growing family), also factors in major expenses on the rental property, and assumes that we have 10% rate on the HELOC to be conservative. 

The early withdrawal penalty is just $5,000, but they avoid all those costs I just mentioned, avoid the RMD issue, and get extra benefits like the step-up in basis for heirs.Your comment: "Hopefully this comment won't get me ejected."

An extra $2,000 or $2,500 is not ideal, but you can rectify the problem once and for all.

I think I can get $1150 for the side I live in because we did a little extra in the renovation.

Also units that have extra living space to convert to an additional bedroom would be ideal.