The house is a 4 bed/2 bath in a B neighborhood, conveniently located, zoned to decent schools. 

Therefore trying to get a bit creative with the financing.Positive cash flow will almost be impossible (as I'll have to probably take one bed away, and then build a bath and a kitchen) in what I've been finding, so Im trying to offset the mortgage as much as possible.Long term, ideally I get to keep it and the 2nd unit adds to the cash flow if I ever dont need it anymore. 

The stream bed in question is small/ephermeral, and the properties haven't flood in 12 years, even when the local area has seen some massive flooding in the last decade.  

See below for the numbers:Home Market Value: ~525kLoan Balance: ~476kEquity: ~50kMortgage Payment: $2570Rent Price: $2650Property Manager: 10% (potentially 7% w/military discount from a referral I got)Cashflow: $-185/month, $-2,220/yr1st year Equity Payoff from tenant: $11,561It's a 4 bed, 3.5 bath home built in 2011 that only requires some new paint to be rent ready.

And I'd have to spend $10,000 to $20,000 I imagine to buy furniture, kitchenware, beds, dressers, etc.  

All my property are 3 bed 1 bath and all less than 1000sq house.  

This is DR Horton SFH, and is a newly built single story 4 bed, 2 bath that is surrounded by expensive MI homes. 3) Move into the townhome. 4) Use my $130,000 HELOC as an emergency if rent defaults do happen and save for a year until I reach my emergency fund goal of $41,000? 

Okay, four examples from the past three months of homes/condos me or clients have purchased that are in zones where vacation rentals are legal:  Unit 1:  2 bed/1 bath purchased for $225k, currently finishing up construction to update and make it a 3/2 bath that will sleep 8-10 people. 

Eg if you charge 1300 a month for 3 bedroom charge 150 weekly and fill 4 beds (1 room for sober house manager) = $2400 gross. 

Check out the sales data on when it was last sold and if it was recent within the last 12-24 months be careful you are not buying something that may be maxed out in current market value.Only way to remedy that solution is to buy and add sqft like extra bed and bath or larger GLA but room counts can be best.