My parents are considering selling their home of 35 years which they only have 70k remaining on their mortgage.

Taking cash out by way of a new mortgage is not a taxable event.  

Technically what your mortgage broker is telling you is considered mortgage fraud.

The ideal guests fro 3+ bedroom homes are going to be larger groups traveling together and/or families who typically use Airbnb, Zillow, and other sources to secure housing.

Kattie Ninkovik with Keller Williams out of New Berlin, WI was a great agent and Kevin from Stampfli Mortgage out of Madison, WI went way above and beyond as well as incredible communication throughout the entire experience.

Assuming it can all be done with permits and to code, typically appraisers will give value for a bedroom, but not laundry room. 

Partnered with another LLC not on mortgage.

Last three years I have exclusively invested in debt funds as I did not trust the experience of some of the other sponsors.Integrity Mortgage Note Fund - Jamie Bateman7e Investments - that is mine which I of course invested in. 

Here are some options to consider:Leverage: Use financing options such as mortgages to leverage your existing capital.

My first question would be, would be (mortgage-rent) be lower than the current rent you are paying?