It’s good to budget for unforeseen expenses.Regarding PMI, it’s worth discussing directly with your loan servicer since many lenders require holding the property for a period or reaching specific equity thresholds before removal.If market rents are $2,200–$2,500, hiring a property manager could help you optimize rent while taking the burden of tenant screening off your plate.

Borrowing against your paid off house without an income puts way too much pressure on the success of whatever deal/project you decide to pursue. 

The lot is paid off and deeded to our LLC, but lender will not do conventional loan to LLC for the remaining financing so we'd need to take out a loan in our personal names. 

For us that's 15% off the top line 

I’ve owned different residential homes in California, both sold off market and for over asking.

Search the BP for ADU appraisals to encounter numerous examples.

@Rishika Garimella I am a local home inspector and investor in the area. i think Austin is a sleeping giant right now. the rates are really scaring away buyers. but since competition is so low right now, its a great time to snag some property while its not being ripped apart by investors. i think the hutto manor area is a great choice, once that freeway opens up that connects taylor to round rock, it will definitely become a point of interest.

Question- do I keep the heloc I have and just pay it down or do I get a heloc on the rental property to pay off current heloc and go forward with another property? 

As you know, marketing and price are both very important, and vacancy will significantly impact your income, so you are almost always better off charging a lower price and getting it filled with a good tenant.  

Currently work a day job and have no capital to start off with.