Having lived in IN for 8 years before moving to Austin TX, I believe this city offers great opportunity now and much potential.

We live in California at the moment and I have W2 job and my wife a small online business.

Many investors start with a multifamily property, like a duplex, as living in one unit and renting out the other can offset your mortgage and reduce vacancy concerns.Take your time running the numbers and researching neighborhoods—you're off to a great start!

live-in-flips are a great option too!

I change out rugs a few times a year in my living room.

I live in a popular vacation town in the mountains of Western North Carolina.

You live in a $1,000,000 house and are able to secure a HELOC for $150,000. 

They will all (in theory) be living somewhere.

Like the others mentioned, either 3.5% down if you intend to live in it.

I don't think you are going to be able to get insurance for two separate living units in a single-family when they are both illegal and likely do not have the correct egress windows (basement) for fire safety which could subject you to huge liability if something happens to either party.