The strategy would work  better if it were your primary residence, but it becomes more difficult if you're trying to convert a SFH to a true two-tenant duplex.1) You'd must likely be violating zoning (Unless area was zoned MF), so you'd have to hope the conversion flies under the radar.2) Utilities is the biggest hurdle, as a SFH only has one water, electric, and gas meter.

That being said, $3750 is the new qualifying income, minus $1250 for rent, minus $200 for utilities, minus $150 for Phones and TV, minus $1000 for two expensive vehicles.

Depending on the loan amount, they will probably want a 15-25% equity injection.You can also utilize your health insurance claims and/or medical equipment as collateral for a secured line of credit. 

I am a Veteran of the United States Marine Corps, and I have utilized my VA home loan to purchase our first home with no money down.

Here are the knowns:Rent per tenant: $750 (this is below market value due to deferred maintenance, I believe $1,000-1,200 is more realistic)Property taxes: $900 per yearLandlord insurance: $1,000 per yearLandlord pays water/trash: claims to be $125 per month (will ask for proof)Landlord is in charge of snow removal and mowing lawnThere are 5 electric meters, each tenant pays their own (landlord covers hallway and outdoor lights)What I plan to ask for is the copies of the leases, copies of the utility bills, and copies of bank statements showing the tenants are actually paying on time.

The “seller” will buy back these two tracks with the proceeds of MUD bonds he sold to reimburse himself for advancing $8 million for utilities improvements.

I walked into a 55k triplex with drop ceilings stained and falling down, rats fighting to get off sticky traps, no HVAC or separate utilities, and the back foundation dropped so much the floor buckled.

City has liens on them for cleanup and unpaid utility bills.

.- Underestimating utility bills.- THE BIGGEST ONE: underestimating or completely excluding vacancy and maintenance reserves.

This at least would get someone else paying utilities.