I don't know anything about their policyholder experience.However, every homeowners policy I've ever seen, even with a "home sharing" endorsement or rider, requires some owner use of the property. 

The only item I would suggest is double check the payment terms of the your HELOC... in particular, can you pay interest only or are you required to pay a portion of principle each month on the amount utilized.

No cutsodians required. 

Its a great idea, but you will need to consult the township in order to understand their requirements for liveable space.

Our biggest expense was replacement vinyl siding, which costed around $40K.

That is the only way you can deduct some expenses and use depreciation within the IRA.

Quote from @Matthew Irish-Jones: Quote from @Mark Cruse: Yes, there will be more expenses above what's mentioned here but if this is done properly it can be kept to a minimum.

Padsplit seems like a neat idea to me, but seems expensive. 

I live in Fl. where insurance is pretty costly but I am also investing in states where insurance seems less expensive.

Lets go under at $800 so now monthly expenses are $3,800.