I think that is a good idea Tracy.

I think its not a terrible idea at all and should be pretty good idea actually.I'd recommending reading this "House Hacking" book from the BP Bookstore as your best bet for next step and understanding this process!

Its very risky in this market that we just came out of the "highest" in history of property inflation due to mostly the covid/pandemic.I think the other flip side is trying to use the equity to buy more properties so in most cases letting the property appreciate or doing renovations is the safer way to get the equity up without essentially borrowing your own money back in 5 years.

I think you crossed 2 of the more common real estate tax benifits.Section 121: Primary Residence Capital Gains Tax Exclusion What it is: Excludes up to $250,000 ($500,000 if married) of capital gains when selling your primary home. 

Basically you are spending a large sum of upfront money and hoping you get an roi on that, my understanding though I really don’t do that type of marketing is it was a good payoff if less than you would think based on total sales volume in the before times, but again as conversion rates fall it’s become harder to justify.

What do you think the best way to finance the project?

I think someone else may have replied to this already, but yes DTI is considered. 

Always think it is extremely important to note that Cap Rate does not drive value on Single Family Rentals since NOI is not the factor for the vast majority of the market - only really relevant for Multifamily and Commercial (BP audience is generally skewed towards residential not commercial investing)

I think you need to know who your investors are.

The bank has no say in it.None of these facts add up and I think there's more to this story.Either way, banks don't buy houses so don't waste your time there.