When there's tenants already occupying the property, there's often times different leases that were signed among the tenants.Additionally, renting by room usually sees higher tenant turnover which in turn causes more work for the PM.Other challenges to consider:- Disputes/conflicts among tenants (different personalities if a tenant doesn't know the others prior)- Occupancy limits- Splitting utilities (what if someone uses more water?)

Utility Costs (Water, Gas, Electricity):- Paid monthly by the tenant unless included in rent.

If we made a mistake it was not utilizing our mentor even more.Deal analysis is something like this:Deal 1  sold this week at auction for a loss, probably a $4,500 loss, this is in my profit calculation.Deal 2 Bought for 20k sold for 45 with 10k down and 35k financed for 8 years at 8%  I counted this as a 45k asset but probably should have only counted it as 35 since the 10k has been reinvested and is reflected in other assets.Deal 3, bought for 10k and foreclosed on a non performing borrower, we will be all in for under 20k, and should sell for @ 45k, maybe more if we do owner financing.  

It felt like a no-brainer for the value of the land, but being able to utilize a traditional mortgage because there was a clean yet simple 3 bed 2 bath house on the lot made the deal even sweeter!

Using a Heloc utilizes the equity that is sitting dormant, it provides tax relief (once again check with your tax professional) as it is interest income, you can typically get a reasonable rate andlastly there is no out of pocket money.

The basic idea of having an appreciative asset that I could potentially utilize later in life in a multitude of ways is exciting. 

Turn over cost when your tenants leave (check leases), marketing cost to add to the placement and monthly fees from PM, and utilities if those are provided by the landlord.What's your exit strategy?

I imagine a lot split would also significantly increase cost of utilities as now I would have 3 hookups in that scenario.I am also concerned what would happen to that sweet 3.25% 30 year fixed mortgage I have, which I don't want to create any risk over in the slightest.Any advice on how to frame my counter arguments would be incredibly appreciated.

As for capital, I will be utilizing my HELOC for initial fund on first deal.

I am estimating at least $50,000 between furnishing it and updating.How does this look:$1.3 million with 20% down DSCR loan buy-down the rate from 9% to 8% 30 year = $9,332 (principal/interest/tax).Utilities - $750Income - Was thinking $250 per day but let's say $225 per day for each unit (30 days) just looked at AirBNB and AirDNA in area = $13,500 (.20 vacancy) = $10,800.I would manage it, but still need to think of cleaning fees.