The house has 2 beds 2 bath upstairs where me and my girlfriend will live, and a walkout finished basement with 2 beds 1 bath downstairs.

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?

There is a strong rental market in Sherman Texas so I imagine the rent could be more than $1,000 but the property is only a 2 bed 1 bath. 

In this strategy, it's important to note that appraisers do not consider the ADUs to be actual Dwelling Units so an SFR with an ADU is not the same as a Duplex, even if all of the features (bed/bath, GLA, etc are exactly the same).

Purchase price: $242,548 Airline Crash Pad with 18 beds available for a total potential for $4225 per month.

After sitting on the sidelines trying to get into real estate investing for several years, I have the opportunity to purchase a 1 bed, 1.5 bath home in a desirable part of the California desert.The purchase price is $299,000 with a 7.3% interest rate and 3% down.

So far I have an ok quote from Bamboo Ins but I've never heard of them and they don't say on there website who is the underwriter.

Market rate right now is minimum 300 dollars above what I am charging for the unit but my tenants are good and I don’t feel right springing such an increase on them. 1500 per month is what I would have to pay for a 2 bed 1 bath apartment around here and my unit currently is 3 bed 2 bath. 

1300sqft 4 bed/2 bath SFH versus 1300sqft 2/1, 2/1 duplex.assuming same area, both new builds, same finishes etc etc. 

That may help cover your current mortgage payment, the HELOC and still put cash in your pocket.Last ditch: if you happen to have somewhere else to live: If your "Investment home" is close or near to an airport (10-15 mins) consider: Renting Beds to Flight Attendants.