I am trying to be creative on an offer (my 2nd deal) for a By Owner home where the owners have limited equity and have the house priced on the high end of what it's worth.

Make sure you are with the right broker who your embraces your ability to invest in properties and doesn't limit it.

It is really up to you how much you want to pull out up to the LTV limit. 

As much as it makes sense to become rich and successful before investing so any losses won't hurt you... almost everyone I know takes risks with investments because almost everyone I know isn't rich and successful (shocker). 

Then you need to know if there is a limit to how much rents can be increased in your area. 

From my limited Canadian life experiences (Big Smoke, Calgary), I didn't know houses were available below 100K.

This loss on paper, will offset against your active income on the 1040.

A legit assistance animal is not a pet, it is an assistive  like a wheelchair in the eyes of Fair housing, Each state does have the right to limited regulation in this area, in WI we can now require documentation form a WI licensed professional, where previously an online Quack could sign off, there are also situations where you can deny, if the animal could cause a problem or pose a health risk for other tenants. be careful on this one and know the law. seek advice from a licensed professional. 

America was and is built on small business.. rentals are for when your small business is making excess money and then you invest.. not have limited money and think real estate is going to carry the day.. 

Tag me if you have any specific questions but here's some quick bullet points on the program:Other Important Items to Know about “Conventional” Renovation LoansMaximum – Minimum Purchase/Upgrade Amounts:Minimum: $5,000 (below this on an exception basis only)Maximum: Limited to 50% of the “after improved” valueOccupancy: Primary, Second Homes, Investment PropertiesRenovation Term: The renovation term for this program is a maximum of 180 days.The Borrower(s) is responsible for the work being completed within the escrow period.