They already "made it" via what there doing for active income. 

Financial freedom isn't simply about replacing your current income, because inflation continuously drives up prices, making a fixed income insufficient to maintain your standard of living.

My plan is to funnel the rental incomes from all three properties, along with my W2 income, back into the HELOC while covering all expenses from it as well.

If the market is strong, holding could lead to future gains, especially with depreciation deductions offsetting rental income.

That should cover 2 rental income periods, returning $660 to your pocket.

Also, for DSCR, they do not use the actual rental income on tenant-occupied houses.

Other KPIs and considerations you should evaluate when talking to any lender who offered private placement of loans/notes are historic default rate, how quickly they can place your funds (do you get preference over their income funds, for example), average interest rate - borrower note rate and what is passed through to you, are loans serviced by a 3rd party servicer or in house.

WIth the new FHA & Fannie Mae legislation, many lenders are forecasting the rental income from additional units, even if they're not a zoned duplex.

Buy and holds is the key to true wealth with all the benefits of depreciation, appreciation, loan pay down by your tenants, leveraging the equity, cash-flow etc etc, but it often times isn't the active income that pays the bills until you build up a portfolio and even then there's the tenant management or managing your property managers.That's why I'm involved in all 3.

If you’re holding onto tasks that someone else could do better, faster, and cheaper, you’re limiting your income potential.Discussion: What’s One Area of Your Real Estate Business You Need to Let Go of?