But no, that sounds ridiculously expensive for design cost. 

You can deduct it as a business expense, but it is depreciated over 27.5 years.

This way it’s no up front out of pocket expense for me and they then have the extra money to spend as they need it.

@Tim HoltFrom my experience, house hacking can work well if you focus on minimizing living expenses and setting yourself up for future cash flow.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

Whose saying buy expensive homes?

I have funds tied up in other projects at the moment but my inbox is FULL of solid deals.We are familiar with some companies that do this.Som will only do first position loans so in many instances you need to refinance out through them and it can get expensive if you ahve a low interest rate.

@Constance Kang well you discovered how many of the most expensive REI instructors work in this industry.

The lower rate decreases my monthly expenses, increases cash flow, or gives me a higher LTV.Increasing Rents with Co-Living:I have changed my rental strategy to Co-Living (rent by the room).

I haven't reviewed the Standard Lease Agreement yet, but all I need is the right to sublet, and possibly some negotiated capital responsibilities (owner pays for repairs over a certain amount or split responsibilities on certain expenses).