I'd estimate your cash flow after you pay the loan payment would be $600-$800, which a lender that understands investment real estate should give you some credit for on your DTI.As for a bank, I have a specific lender at NBI that I would recommend.That 600-800 you are factoring in the HELOC repayment each month too, correct?  

You have to factor in demand and vacancy rates to determine if it will be more profitable, and that’s specific for each market.

Credit is a factor as bad credit may limit options, or may have the lender require you to put 10 or 20 years of taxes and insurance into escrow. 

You will also have to factor in the closing cost for the new loan.

Heck, some people might even pay more for the 'cool factor' of living in a 'small home'....I'd give it a go since you're a veteran of this RE stuff.

I think another factor here in determining whether its a good investment is your age and your goals. 

The systems you have in place to handle leads, follow-up and your sales processes are also huge factors.Another factor is what is your monthly marketing budget?

As I mentioned every person and their criteria is going to require a different loan program and each loan gets risk graded based on several factors.

Haven't seen him in what feels like forever. 

So, factor that into your thinking about whether its the right choice for you. 4.