While living in a high-cost area can present challenges, it also opens doors to creative strategies, like investing out of state or leveraging partnerships.

You will likely need to rehab for any strategy but Co-Living will be more bedroom additions which is less cost compared to kitchen and bath remodels that are more needed for furnished rentals. 

Using a HELOC to fund your first rental can be a great strategy, especially if you want to preserve your cash for other expenses or unexpected costs.

Also, how do you balance cost-effectiveness with providing a high-end feel?

The end product will be great, as others have mentioned perhaps in other threads, Delta has not increased any of the cost, so there is still a huge equity upside.

I’d appreciate your perspectives.Here are the details about our current home:3/2 Class A property in a middle-America town with historically ~1% annual appreciation.Purchased in 2020 for $200,000 at a 3% 30-year fixed rate.Remaining mortgage: $150,000.Estimated value: $270,000 (based on recent sales).After selling costs: Likely $100,000 in net proceeds.Rental potential: $2,000–$2,300/month.PITI: $1,200/month ($700 mortgage + ~$500 insurance/taxes).Maintenance/CapEx/Vacancy (20%): ~$400/month.If kept as a rental:Net cash flow (self-managed): ~$500/month or ~$300/month with property management.Low appreciation potential but ~$400/month in principal paydown.Considerations:What’s the additional overhead of managing a second rental property remotely (3 hours away)?

No requirement to be in the inner circle other than to get the 100% funding up to 65% of ARV, otherwise it is 90% of acquisition cost + 100% construction costs up to 65% of funding.

Starting with house hacking is a smart move, especially in a higher-cost area.

Lastly funding developer who has 3 subdivisions going in WA DC market. these are big time deals and with our funds for the soft costs  500 k to 1 mil on each project my client is going to make  sit down  but probably over 10 million net  life changing money and well we will do good too !!

Their cost basis is about $33k, the agreed upon purchase price is $250K and the expected appraisal might be around $350k-$400k.