But the other side of the coin your expenses go way up when your employer is now not paying you any bene's and you have to pay all your own health retirement self employment tax AMT tax etc etc. trying to do this with max leverage is going to be a long slog to replace a 150 to 200k a year job with bene's.

Don't forget to add fringe benefits such as health insurance and also payroll taxes, etc. 

I appreciate and welcome any thoughts, concerns, or ideas!

My concern with the home equity loan strategy is I'd still have the first home mortgage, the equity loan, and a new mortgage (albeit reduced from the down payment).

A concern, however, if we do a sale, is with the price, as I understand that if I sell at too low a price (say, $200K, give or take a few thousand to pay off my current mortgage), the IRS could assess a tax on my parents if the price is more than 25% below market value. 

I’m mainly concerned about the rate change happening without prior notice, especially since both loans started and are closing on the same day.I’m scheduled to sign tomorrow and close on Friday.

Private money won’t take it because if I can’t refi it out they won’t get their $ back and I can’t ask my investors to do the same for the same concern.

Concerns: Although the cashflow is good, we weren't sure it's valuation and potential for appreciation since there is no good comp like this property in the area.

In desperation, I even visited their office in person, only to have my concerns dismissed and another empty message taken.

My concern is that I might be over leveraging myself if I try pull out a 20% down payment for a DSCR loan.