Is it true that the bank would use the lot as collateral for a new construction loan @Troy Sheets Yes, the lot value as well as any soft costs like architecture, engineering, etc. can count as well with most banks.

We found some really good options here; after marking out budget and guest count, there are quite a few options.

While those escrow accounts are funded from GROSS cash flow - I don’t count those escrows as a part of my income from my business.  

In theory, it's a good idea to house hack in general, but I don't understand what you are counting as rent.

On the other hand, this lender is also very picky, for example they require 100% liquidity of the borrower, meaning someone would need $3m liquid to get this $3m refi (& you don't get to count loan proceeds towards that liquidity).

FHA 3.5% down could get you about $500k worth of house at 3.5% down.Also keep in mind that rents from the units can count toward qualification.Up to 4 family allowed on FHA or VA as owner occupied

Or, more likely, it just won't be renewed when you were counting on it.Could you still handle capex if your HELOC vanished?  

I would get very close to breakeven, but you are still living for practically free (not counting repairs, maintenance, and management) while paying down the mortgage on a monthly basis.I have never purchased a new property to house hack, but I would run the numbers like any other investment property.

Keep in mind that rents count toward qualifying income.

Similar condition, square footage, bed/bath count, etc.