Texas does have specific rules regarding home equity loans and cash-out refinancing (often referred to as "Texas Equity Section 50(a)(6)"), but these don’t prohibit homeowners from using funds for investment properties.

They seem to either go one way or another, NO investors with strict HOA rules, or full force on investors. 

It's a multifamily investment partnership and we will have a separate contract dividing everything else 50/50.

This is very much a learning process for me 50% rule, 2% rule so on so forth.

Don't focus on a "rule of thumb" as a rookie.

I have also seen appraisers recognize that multiple ADUs by rule does not qualify for conventional F/f financing.  

My underwriting would have this large negative cash flow for 7 years.I would do a thorough underwriting but want to show using quick math the issue so I will use the 50% rule.  

Proc. 2002-69, 2002-2 C.B. 831, for special rules applicable to husband and wife state law entities in community property states.

I think demand is decent.If you're looking in a flood zone you'll definitely want to understand the FEMA 50% rule.

Its hard to reach the 1% rule here now.