You won't be subjected to capital gains taxes on the increase in value of your property.A little tax theory here to help understand: There are many different types of income, and many ways those types are taxed.

Here are the detailsOriginal Note:  $48,500, 8% interest, 30 years, secured by first lien on $70k property, typical note terms.Date: 12/9/2009Current Value:  $41,505Payments:  $505.88/month includes $120/month escrow for insurance and property taxes, No payment missed, 3 payments late but not by more than 30 days.Escrow:  -$800 now but payment will be increased for negative balance and increased taxes/insurance.My guess is its worth $55,340 valued at 6%

I would get your finances in order (pay off all debts) and increase your savings before doing this.

Now if you find a builder willing to go partners and build at cost with you financing the deal this could be mutually beneficial and greatly increase your returns.

Taking a look at the last 5 years alone shows an increase in property values.

You can make it clear to the tenants that they will be held responsible for excess damage or waste caused by the animal,  just as if they themselves did it.While you need to be careful to avoid a claim of retailation,   maybe schedule the next couple rent increases to be a couple percent more than you otherwise would,  and bank those funds towards expected greater turnover costs.  

Rising market indicators are properties increasing in value, days on the market are shortening, multiple offer situations, and/or a tightening supply of houses.

Used a PC twice during that period, but got sick and tired of viruses and blue screens, so pretty much Mac for 30+ years.

The HOA fees scare the heck out of me because they can increase at a moments notice

I would even do 6 or 12 month rentals to give yourself room to reevaluated the market and increase the rent.I would then draw on the HELOC which your tenant will cover from your premium rent.I would use the HELOC as leverage as a down payment to a large multi-unit.