Let’s project realistic expense estimates via the 50% rule:$12k rent / 2 (50% rule) - $19332 P&i = negative $13332/year or negative $1,111/month.  

If it becomes a project, I will do the same as you.

My biggest hurdle has been securing financing to work on multiple projects simultaneously.  

As others have also noted, DSCR loans are separate from rehab loans which are often structured as hard money loans bundled with the upfront purchase.We fund both hard money for the purchase + rehab as well as long-term DSCR loans for the cash out refinance in BRRRR projects.

The first project we ever flipped was only a couple blocks from our personal home.

Consulting with a zoning attorney is advisable to assess the feasibility of your project and guide you through the necessary procedures.Hope this helps!

@Rocky Gibson how much are you needing for your future development projects?

I’m sure they aren’t advisable on larger projects but depending on the project size and complexity, they worked great for me. ~$650 for the study. 

I know as the Lender, I always have the option to modify things but the NoD helps set the stage if the borrower doesn't act or respond in a way I feel is beneficial to getting the project across the finish line and me my capital back.     

If you are going to be active, and have high conviction in a project with a clearly defined entry/exit strategy then using a HELOC is one of the better sources of capital.But, I continue to have my stance that, on average, folks who use a HELOC to fund the down payment for long-term investments will eventually find themselves in a situation where their portfolios drain their personal financial situations, rather than fueling them.