You can however as a cash buyer purchase a home near Indianapolis and some of the suburbs of Chicago (which includes Indiana) for $100K and rent them out between $1500 to $2500 per month. 

The new mortgage will be larger than your original mortgage since it includes the additional amount you have cashed out.

"Tiny homes" is actually a classification that includes 6 different types of dwellings.

Code for your area may include plumbing, electrical, bedroom windows (proper height, width and clearance for egress), some areas require sheet rock around the heater and hot water heater. 

This process is quite specific and must be adhered to with strict guidelines, including timelines and the nature of the property being purchased.Another method is the lazy 1031 exchange which is banking passive losses on your 8582 FORM from depreciation on other parts of your grouped portfolio such as several other real estate syndications.

Many investors have full time W2 jobs, myself included.

The issue is, after asking them, my neighbor/tenants will not update their mailing address to include the "1/2", so I am regularly getting their mail and placing it in their mailbox.

Other considerations things to look at include; are any utilities common (like paying for a boiler for all 4 units instead of individual furnaces), how does access/common areas work, do the tenants all have access to laundry, are there any common area utilities (light common area lights, electric or gas for laundry) that would stay in the owner name.  

Be sure your marketing and your application include whether you have a pets/no pets policy; assistance animal policy; ALL adults must complete application and will be named on the Rental Agreement; utility responsibilities; SD requirement; when and how various funds are due (app fee, SD, initial rent, etc).

The water, gas and electric are all on one bill - so it will have to be a "utilities included" rental.