I work with a bunch of different lenders, so I try to give advice that has the broadest possible application, since we don't always know who the lender will be on the N+1 deal two years from now.So my suggestion to you, to have your cake and eat it too, for that SFR that you want to rent by the room to maximize rent: have one lease, one tenant.... and that one tenant is allowed to sublet.

Most of my renters eat together in the living room in front of the TV, or they may eat breakfast at a kitchen counter.

Of course, this is going to depend on how many points you're willing to eat for buy down (break even analysis timeline is a must), but either way, mid 9%s is at least 1-2% high.  

If not I'd just put a new one in and eat the cost.

Is this one that I have to eat?

The issue with HELOCs right now is that the rate is around 9-10% which will seriously eat into the profitability.

I can set up the rent payments, collect them into easy-to-create bank accounts, and then have the system automatically categorize those payments for my Schedule E at the end of the year because Baselane already knows what each of the payments was.

OR Hire property manager and eat the costs until you have cash flow coming in? 

Thus they split out the Rental, and use a C-Corp blocker to eat up the Ordinary.2) The activity would generate self employment income. 

Hey @Garrett Kroll, so you could block all the days that are holidays but frankly I think you just need to eat it.How much cashola are we talking?