Ultimately, setting up and maintaining an LLC comes with annual administrative costs so another thing to consider is if your cash flow is ready to support these additional costs. 

On the flip side if the funds were elsewhere I could sell off whatever they were in and still maintain my primary and likely cover the debt for many years as worse case.With that said, also not a firm believer in high LTV to allow for swings on value...

However, when you rent out a portion of your home, you need to make sure you're properly dividing any expenses you pay to maintain the home between personal and rental uses.

Make sure to have correct insurance and maintain property.

They round robin cash out refinances to maintain the liquidity.

You are better off waiting until this renter is out, cleaning the place up, and then showing it vacant.Your lease should include something about the tenant maintaining the property, you should inspect every 3-6 months, and you should have consequences for tenants that fail to comply. 

So maintain this asset is risky.

Personal and Professional Liability - Florida’s premises liability law requires landlords to maintain their rental property and protect their tenants and their guests from harm.

So if you make 10% the first year on $1 of equity (so 1.1x your money), you need to make 10% off the 1.1x starting point (so 1.1*1.1 = 1.21x) to maintain a 10% average CAGR across the two years.In your example, if the $800 per month is after interest, then you made a 38% return (CAGR) for that year ($800*12/$25,000).

This practice enables the Tax Commissioner to maintain a very high collection rate because the investor absorbs the risk of loss (but also the potential for profit).