Remember to review things carefully before you sign on the dotted line, this should not require more than simple common sense.

Previously a duplex, with one bedroom one bath units, we transformed the property into an SFH with three beds and three baths, the property has a ton of space, which is excellent for the crowded downtown location.

Cross the line is poor business management.Always remember "no good deed goes unpunished".

Purchase price: $87,500 Cash invested: $28,561 Contributors: RaeLynn Zaharevich The 2 bed, 1 bath house was a great deal bringing in $250 in monthly cash flow was almost lost due to,what I feel is incompetent lending professionals.

Actually there are 5 lines (yup) in the big FHA handbook that specifies the requirements for a 2-4 unit mixed use.

those type of homes are all throughout houston... id believe the agent i went to see a house once that was listed 100k, it got done 105k ... about the same 1600 sqft 3 bed 2 bath ... the house had a tarp on the roof, it was raining and leaking in, foundation problems all over... whoever bought that would need to put in 50k at least if not more.but if it rents for say 1350-1400 a month, then there will be an investor willing to do that deal and roll with the riskcap rates in houston are pretty low and in most major metros are much lower while there is still a ton of money everywhere looking to find yield

Line drawn on sketch to show orientation. 

Many lenders will look at net worth and liquidity while using the lower of the two to figure out what a borrower's credit line would be.

My subject line was misleading since it was accidentally cut off before I posted and then I couldn't edit it after.

Similarly, the lenders I've researched that offer equity lines on investment properties are limited in their combined LTV.