But my solution in your case would be to frame out a dividing wall of 2x4s and either drywall or if the basement is prone to taking on water then I’d look for something waterproof as opposed to the drywall.

There's a few different ways to focus on a lower rate such as with house hacking and making the investment your primary residence, requesting a significant closing credit from the sellers for standard rate buy-downs (which I've had great success with recently), or utilizing lenders who offer short term rate lowering solutions such as 2-1 rate buy downs (again, ideally paid for by the sellers).

Did you ever find a solution for a 3rd position heloc?

The only solution I see is connecting them to city sewer which won't work 95% of the time. 

I am not interested in this space as a "get rich quick" solution but more so about developing and growing assets over time and eventually trading up into better assets that can provide the cash flow I need to accomplish my goals.

Hi @Michael Moya, I was wondering if you found a solution.

I will use that number as a reference:2.

@Polat CaglayanI've never seen a formula but here is a general rule of thumb for multifamily:The class of an apartment refers to the quality of the building, which can be determined by a number of factors, including age, location, and condition: Class A: These are the highest quality apartments, typically built within the last 15 years.

We ran into the same issue when we made our Costa Rica investments and didn't really find a good solution for a local mortgage there. 

Hey Jessie --what other passive RE models are you referring to?