The owner should look at it more like a DSCR, and should be pricing the property and offering terms such that the income from the property is adequate to pay back the loan.

Nathan keep in mind not everyone is a landlord most litigation in RE is between partners and investors suing GPs etc etc. 

I’ve seen people buy land thinking water was covered only to find out they had to pay 6 figures to get water re-routes or upgrade pump stations.

A traditional bank will not give a line of credit even if there is significant equity because it boils down to being able to pay back the money. 

So, if you buy an older home it's typically much cheaper, since you're not paying much for the structure. 

regarding roofs  pray for hail storms and then replace .. in those type assets that are really priced for cash flow.. values will rise only when rents rise.. as non of them will ever go owner occ.. at least that is generally what happens with this type of housing.. the value play is the tenant pays off your home and your home generates enough cash flow to break even at best and feed it a little bit over time.. then at the end of your mortgage term 30 years you now have say 2 mil of paid for assets the real money is made on these assets cash flow wise ONLY if you pay cash IMHO

How much principal per year are you pay ing3.  

With a background in residential real estate, I’m eager to expand my knowledge and build connections in the industry.I’m especially interested in networking with like-minded professionals who are passionate about creating value through real estate.

My SBLOC requires that I pay it down to $0 once a year and keep it at $0 for one whole month.

A HELOC is certainly an option if you could pay it off rather quickly or else you'll end up paying a whole lot in interest layer one.