i have a couple quick questions about using rental income to qualify.This is my first (possible) purchase and basically the home price is outside of my range to qualify on my own.

I figure either option will help me get answers to the vast majority of my questions. 

as the neighbor would retain some value in the land (easement for drain field) and the land is essentially un-developable, what is a fair price range?  

But if you took a HELOC, which tends to have relatively high interest rates, your blended rate (the average of what you're paying on your mortgage plus the rate on the HELOC) would likely be in the same range as today's mortgage rate.You'd also only be renting out one unit, but by selling it might allow you to get more than one additional unit and still grow your portfolio. 

Depending on what advisor you speak with you will get opinions ranging from 1 to 2 years for holding purposes.  

As of now, HELOC rates typically range from 5% to 7%, but it's essential to check with multiple lenders to get the most accurate and competitive rates.Joshua Christensen - I totally agree with these points as well. 

Many investors offer residential 1-4 unit financing but a vastly smaller percentage offer 5+ units.

I don't know much about the Peninsula or South Bay but I have seen some deals in the East Bay in the high $600,000s to $700,000 range.

I have worked in sales for several years, and am used to this, but it still frustrates me at times.Set your offer range and stick with it!

@Ben Russell- thanks ..ARM rates are definitely higher / worse than fixed rate options  ( especially on invst properties ) ...Use the  30 yr fixed option and make sure you have the delayed financing aspect figured out ....no way you will be able to get mid  6% range at this time