This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

Two parents and 4 kids seems reasonable, but my houses are really tight with more than 8 people milling about. 

It has an upstairs balcony door to the outside, and could potentially be converted into two units.

I could get around 50k through a heloc and renovate my basement into a two bedroom one bath apartment, hopefully getting $1500 a peice in rent to cover my mortgage.

Having an experienced GC build their first deal or two of their own is, for reasons that sometimes don't make sense, get push-back.

Quote from @Bri Hall: I purchased a residential lot that after being surveyed can have two homes placed on it.

Thanks,CristinaI am investing in two different partial notes with them. 

While I agree a lot of $ flows thru US, its still the everyday middle class person that drives the economy.I read two interesting datapoints today:1.

I am considering buying a property in Spokane that includes two separate housing units. 

I have a unit rented to two roommates.