I don’t see the sense in paying off my own house at presumably low interest rates, and exchanging that for a higher rate, variable interest line…unless I have a really good plan for not losing my house.  

Obviously a higher down payment will always help properties cash flow since your payment will be lower, but I did want to explain the options available when you actually live in one of the units.Definitely assemble a team that works in the areas you want to invest in and you stand to learn a whole lot - I hope this helps!

There were times when my projects were on the verge of failure and I was at risk of losing everything. 

I hope you do too.

We are hoping to break even at this point with the plans for appreciation.

If you do not run numbers, you are shooting from the hip and your strategy is either fueled by "hope-ium", or your experience is so immense you know every input and return without running the numbers (but even the most experienced investors run their numbers).Here's the best advice I can give you: You can "run the numbers" until you are purple in the face, and you will never know what every single ACTUAL number is going to be before getting into a deal.

It may not add much value but I am hoping it'll bring up the rental rates when that time comes.

Takes the pressure off to find a subpar deal and lose a million or two. 

An appraiser doesn't want to lose his license by inflating values.

I did not want to lose the deal to someone else so I asked for it at the asking price.