I have excellent credit, $100k in savings, the lot value to use as collateral and about $500k equity in my primary residence. 

@Sarah Bratcher Great explanation. 

To all aspiring house hackers and those aiming for a single-family primary to hold it as a long-term rental, what are your biggest frustrations likely keeping you from jumping in the game? 

Currently, I own a single-family home that serves as my primary residence.

Renting where you live and owning elsewhere may not be traditional, but it makes more intuitive sense to cash flow 10k a year off of a 500k investment oppose to racking up a 3k/month liability off of a 500k investment (primary home). 2.

The reason for this is that existing loan guidelines are set up to favor people buying their primary home.

I talked to two different local credit unions about pulling 300K in locked equity out of our former primary home that we converted to a short term rental last year.

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

This is the primary reason your property has is not a good brrrr. 

Thank you for this detailed explanation @Brie Schmidt , this was exactly what I was looking for.