The math behind is like this 175k loan is roughly mortgage payment of 1408 per month ( This is with 9% interest rate, DSCR tend to be 1-2% higher ) + insurance and Taxes.

Yes, it's possible that I might of done the math wrong. 

I do appreciate that every REI property is different and have used many of the existing calculators to do the math, including Rent to Retirement (leaning towards using them) and that it is not easy to get instant thousands per month in cash flow.

Also, to give you an idea of how the math works here is an example based on your home's values:If the lender lends up to 80% of the home's value, the maximum loan amount based on 80% LTV would be $392,000 = ($490,000 * 0.80).With your existing mortgage balance of $390,000, the remaining available equity for the HELOC would be $2,000 = ($392,000 - $390,000).Hope this helps!

Lastly area of 1 mil to 2 mil homes and you bought it for 7k.. my first hunch is something is potentially really wrong with it.. normally lots in those types of areas would sell well north of 100k if your building 1 to 2 mil homes.. thats how the math generally works to back into land values.

Maybe I think a little differently than the folks here... for me it is just a simple math equation.What would your payment be if you took out the $250k?

But the math is valid and for most people the stock market is in fact the better investment.

@Trevor CrabtreeCheck the math and the rents and make sure to factor in your cash flow calcs for maintenance and a cushion for bad actors especially  out of your area.  

So expand on your thoughts on where you see the risk or biggest risk given what I have said above..Maybe I am doing my math wrong ?

For example, if in the rental application you don't put xyz it's illegal and you can get suedif in the rental application you mention xyz it's illegal and you can get suedif you put clause xyz in the lease, it's illegal and you can get suedif you don't put xyz clause in the lease, it's illegal and you can get suedif you sign the lease wrong, the whole lease is void and you don't have a leaseif you don't provide xyz to the tenant, you can get suednot to mention how unfriendly my state is with respect to landlords, if a tenant is not paying rent, good luck evicting them. plenty of properties in my market for dirt cheap because it has deadbeat tenants and nobody wants to deal with them.yes in an ideal world I have 20 lawyers and accountants on speed dial who I can call any time, but lawyers and accountants are expensive and I have done the math, at best if you are really lucky you can barely cover your mortgage, I don't have money for a lawyer.