I've had lots of inquiries from small families who are interested in fewer bedrooms.The house meets the zoning requirements to be a duplex, and structurally, it seems like it might have been a duplex before, even though it's currently registered as a single-family home in city records.

Converting your single-family home into a rental property involves several considerations to protect yourself and ensure smooth operations: Establish an LLC:Liability Protection: Holding the rental property in an LLC can protect your personal assets from potential lawsuits related to the property.Tax Benefits: An LLC can offer tax advantages, such as pass-through taxation, where rental income is taxed at your individual income tax rate.Insurance:Landlord Insurance: Ensures coverage for property damage, liability claims, and loss of rental income.Umbrella Policy: Provides additional liability coverage beyond your landlord insurance, offering extra protection.Deductions:Mortgage Interest and Property Taxes: Continue to deduct these expenses.Depreciation: Depreciate the cost of the property over 27.5 years, excluding the land value.Maintenance and Repairs: Deduct costs related to maintaining the property.Property Management Fees: Deduct fees paid to the property manager.Filing Taxes:Schedule E: Report rental income and expenses on Schedule E of your tax return.Separate Accounts: Maintain separate bank accounts for rental income and expenses to simplify bookkeeping.Lease Agreement:Solid Lease Terms: Ensure your lease agreement is thorough, covering rent amount, due date, late fees, maintenance responsibilities, and eviction terms.Legal Review: Have the lease agreement reviewed by a real estate attorney to ensure compliance with local laws.Tenant Screening:Background Checks: Perform credit, criminal, and eviction history checks on prospective tenants.References: Contact previous landlords and employers for references.Property Management:Regular Inspections: Schedule regular property inspections to ensure it's being maintained properly.Maintenance Fund: Set aside a reserve fund for unexpected repairs and maintenance.Moving Out of State:Communication: Maintain open communication with your property manager.

Make sure your rejection is in writing and says something like "you didn't meet our standard qualification requirements".

You should also check to see if they require you to have coverage, and if you do, which policy would be primary.

Just about all construction loans require construction experience too.  

Consider that each higher return requires higher risk.

I have a few questions regarding wanted to buy a full duplex or triplex.I would be using a HELOC on primary residence to get the 20% down payment + costs required to fix.1.

The underwriter will require this home be superior in nature to the "exiting" home for a reason to build as a primary.

Even brand new builds will require repairs.  

I’m staying focused on making the best out of my preferred local markets where I know the zoning regulations and what is required governmentally to either own rentals or to do work on my buildings.