Gave him 10 months free space rent and paid for all his utility hookups. 

So all in all, the investment seems solid to me, and this is not my first rodeo, as they say.As for the risks associated with the SBLOC, I minimize those by only utilizing a portion of the LOC so that even if the market drops another, lets say 30%, the risk of margin call is slim.

Need more information surrounding why your current lender is suggesting they cannot utilize the rental income on your investment property.

Hope this helps...https://www.starkhelpcentral.com/rent-utilities-assistance

Some expenses, such as utilities, property taxes, and interest, incurred during this period may also be capitalized.

S8 standard voucher amounts INCLUDE all utilities.

.$8,981 mortgage at 7%$2,918 expenses monthly 33.38% of Gross rental income (Prop mgt, maintenance reserve, utilities, Prop Taxes, Insurance, other)$6,852 NOI/monthly ($2,129) negative monthly cash flow..Same scenario with 50% down, $864 positive monthly cash flowNot saying it's the best use of capital or the only way to do it, instead providing an example using an available market opportunity to share what the numbers look like. 

There are actually THREE kinds of subject to transactions1- subject to existing mortgage without lender approval2- subject to existing mortgage WITH lender approval3- subject to existing mortgage as part of a seller financed wrap around mortgage.with #1 and #3 it’s in everyone’s interest to utilize a third party servicer, who collects and then distributes payments.  

Looking to utilize my equity as necessary as I purchased during the onset of COVID before the prices skyrocketed.

Due to increased rates i did not refi so i did not get opportunity to see how an appraiser valued the half bathroom but the comps with same bathroom count had crazy valuation for the additional half bathroom.Taking under utilized space like a work area to add a br where the added br does not put you above the normal for the area can add value.Similar if a neighborhood is virtually all 3 br and 4 br properties and you find a 2 BR, it could be a value add to add the bedroom via new construction.