I'm looking to take up to 50k out of mine for my next purchase.

@Chris Gomes in your case, you sound like you may be in a scenario like mine where you have a live-in house hack idea that evolves into a BRRRR. 

BUT that home today is next door to a smaller bungalow that went for $699k was rehabbed/rebuilt & just sold for $1.4million & mine is still a 'humble' rental.

The primary reason I was looking to do the rent by the room approach is that as far as personal space goes it's not a huge concern of mine to sacrifice some comfort for a year while I have to live at the residence.

As long as the ROI% on that money is GREATER than the interest rate that you're paying on the debt, then mathematically it makes sense to invest...that's whether you're investing in real estate, the stock market, gold, beanie babies, whatever.The qualitative answer involves where you and your family are financially.

I had mine done for ~$300-400.

Automatizing payments, getting people to sign up for auto-pay would make both mine and the tenants life easier. 

They’re also renting 2.5 million dollar homes while mine is 850k. 

A friend of mine had a house like that and what she did is allow people to come and take whatever items they wanted for free but they had to take two bags of trash with them.   

Mine looks out towards a park.