I work with a bunch of different lenders, so I try to give advice that has the broadest possible application, since we don't always know who the lender will be on the N+1 deal two years from now.So my suggestion to you, to have your cake and eat it too, for that SFR that you want to rent by the room to maximize rent: have one lease, one tenant.... and that one tenant is allowed to sublet.

Most of my renters eat together in the living room in front of the TV, or they may eat breakfast at a kitchen counter.

Are they eating a little too well right now? 

Of course, this is going to depend on how many points you're willing to eat for buy down (break even analysis timeline is a must), but either way, mid 9%s is at least 1-2% high.  

Not allowing pets is a legal selection criteria, unless the person is requesting a service or ESA animal under fair housing, in which case, if they and you qualify, you'd have to permit. 

If not I'd just put a new one in and eat the cost.

Is this one that I have to eat?

OR Hire property manager and eat the costs until you have cash flow coming in? 

The issue with HELOCs right now is that the rate is around 9-10% which will seriously eat into the profitability.

I can set up the rent payments, collect them into easy-to-create bank accounts, and then have the system automatically categorize those payments for my Schedule E at the end of the year because Baselane already knows what each of the payments was.