However, many times this is the most costly option. 3rd party or private submetering companies can help you out too and many times these will be more cost effective.

Last time everyone chimed in.

After a set amount of time, you get the choice to complete the transaction (buy the house) at the agreed price or not buy the house and the owner keeps the extra amount of the rent payments. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $375,000

Cash invested: $87,000

STR

What made you interested in investing in this type of deal?
Avery ...

If not, I do not recommend sheriff sales as a first attempt.

Closing costs, necessary cash reserves, and the expenses to get a property market ready are more than most first time investors think.I have nothing to sell and would be happy to help if you think that I can be a resource.

Either way, there are several people who make this work all the time.

You could form an LLC and have the operating agreement that allows your boss to require you to purchase his membership interest (or allow you to purchase his) in a given time frame.

Additionally, while rates aren't historically bad right now, they are higher than 4-5 years ago, and they will be even higher for you as an investor than they were as an owner occupant, which is what you were when you bought originally.I get that you are anxious to add to your portfolio, but that could be achieved without touching your first golden goose.Sometimes on BP, the push is to leverage every last spare penny, but that can be a risky game as the markets shift. 

I'm curious why you want a HELOC instead of a conventional loan in the first position.