Are you leaning towards a buy and hold or a M/STR for your next project? 

If it is in a market where long term appreciation is expected, and conservative underwriting projects that the payment will likely be covered, then I think it is smart move. 

Lots of investors simply want to go "bold" on all of their projects by using sharp color contrasts, busy tiles that catch your attention, and modern lighting that looks like it belongs in a hotel.

Borrowing against your paid off house without an income puts way too much pressure on the success of whatever deal/project you decide to pursue. 

They’ve already made a name for themselves in Mexico with projects that blend eco-friendly practices and thoughtful design, and now they’re bringing that expertise to one of the most popular markets in the U.S.For investors, this could be an exciting opportunity to work with a developer who consistently delivers quality and strong returns.Check it out:  Travel weekly by Northstar

Old post but I figure I would comment here... my Company, Maven Cost Segregation has done studies on projects like this.

They can provide access to off-market deals and connect you with a network of contractors familiar with BRRRR projects. https://www.biggerpockets.com/business/finder/agentsProperty Manager - Choose a PM with Section 8 expertise to ensure smooth tenant placement and compliance with inspections and rent guidelines. 

Time lost is the most annoying aspect with projects like this.

But I strongly urge anyone to always get Aldermanic support before proceeding because it makes life--and the entire project / process--a whole lot easier. :)IN SUM: Based on what you've shared, it sounds like you won't need to rezone if you just want to build a duplex.

Projected sale: 950-990k Replacement property budget: 990k - 1.1M Plan: rent out the replacement home until meeting the requirements, then move into it while renting out a portion of the home via short-term rental