The most important rule is to have the cash flow of the new property be able to pay all its expenses, mortgage, AND the line of credit back.

Which will make it 4bed 2 bath, and some 4 beds on the same street shave sold for 220k. 

Personally, I bought a 3 bed single family home soon after starting my job and had two friends from college rent which covered my mortgage plus a little extra.

There are sometimes fees associated as well but they seem minimal and scale well since one line of credit can purchase multiple assets.Interested if anyone else is using this lending strategy and what your experiences/recommendations are.

Check it out.I am currently licensing a 12 bed RCFE in Santa Cruz, CA.

Downed Power Lines would fall into that man made category.

Just make sure you do you research on Manufactured guide lines and requirements. 

I agree with Nathan (don't forget to price running extra water, sewer and electrical lines).  

For 1099 income, we will look at a 2 average of income using your NET NET income (bottom line income). 

And what is your price point and are you looking for turn-key properties or something along the lines of a "fixer upper"?