Since infinite banking concept is based fully in excess contributions.

Your concept is interesting.  

your first choice which is referred to as "house hacking" is a very popular concept alot of investors have started off doing and/or implement today.

So if I understand it correctly, its a theoretical concept...not necessarily a formal classification?

@Antonio Evans   I think in the last couple decades we have a mis conception of what an Investor is.IN my mind and investor is usually someone who has a good to great job .. saves some money and Invests in some passive real estate.. while building their carrier and finances.Its not really that easy or possible to go from Zero to investor without some outside income and substantial at that.. ergo folks recommending you continue your sales career.. sales is one of the highest paying anyone can enter fields there is ..

So I get the concept behind them - my question is - I guess until someone wants that land, or if you actually want that land, you will be holding that Lien and I guess if you want to be able to foreclose - you have to keep paying the tax yourself - and even if you DO foreclose and own it - then you have to pay the taxes until you are ready to use it for something or sell it to someone.

Concepts such as the 1% to 2% rule, where the monthly rent is between 1% to 2% of the price of the unit is much more achievable in a triplex or a 4-plex than an over-valued SFR.In your 250k home example, if you get 2000 per month rental payment, you are only making .8% of the home price in monthly rent.

If I knock it down I will have a huge living room and a very open concept but loose som very practical space when the living room is a good size anyway.

Patrick, neat idea.... good questions...One concept that helped me (alot) as a newbie was understanding the difference in  the showroom condition of a house (often newly remodeled) that is for sale and one that is a standard rental...

Welcome to the site @Larry Edwards