If not, you’re probably better off with a more conventional approach.  

@Michael Daniel Probably better to post your numbers here and perhaps people can run them on their end and give you suggestions.

I have used HELOCs for probably most of the purchases of the properties I own. 

You've probably heard of big Landlords losing property, but only because they were flagrantly violating Fair Housing, running a slum, or otherwise egregiously violating the law.

Either way, I ran a proforma and this looks like a good deal (as long as you don't have too much in the way of rehab/maintenance costs).Also, IMO, you can probably raise rents even higher.

Should probably preface by clarifying if you have something to sell or broker?

Hi Charles,This is probably the fastest way to the poor house, mainly because, in Japan, houses are like cars as in their market value depreciates and goes to 0 over time.

And you probably need money for living expenses.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

The SST doesn't apply for legal 2-flats so if you want to use FHA it's probably better to target those that maybe also have a non-conforming basement or attic unit.This is why the 5% down conventional loan is a game changer for house hackers.