What I see is more non accredited or lower net worth who are burdened by debt will be drawn to these types of strategies.

Most mortgage companies will not call loan due if payments are current but you do run that risk and need to be prepared to payoff or refi at a moments notice.

Or this is a non issue if insurance coverage is not taxable.Many other thoughts and input.

A HELOC offers flexibility and lower interest rates, which can be ideal if you’re looking for short-term financing with lower payments during construction.

Down PaymentSaving for your down payment is likely top of mind.

Maybe you can use your duplex as collateral seeing as you don’t have a big down payment?

When I told him it would be a very bad time to sell the mortgage notes as there were almost no buyers, he said he didn’t realize we were investing in non liquid assets?  

I have a large lump sum saved in an investment account for down-payment and any additional costs.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

In this case, your monthly payment with 20% down will have a good MARKET rate if your DTI works with a much lower month payment and no mortgage insurance(MI).