This will hurt the lower income people that the rules was probably intended to protect.  

Yes, there are pockets of the city that support $1,250/month for a luxury 1BR, but one block over or across the street a lower-end 1 BR might be only $450/month, not $800.

I did quite a bit of research when I heard about the HELOC to pay off you mortgage and then using that account as your main account to funnel all your income and expenses in/out of etc etc.....the principle is that you will have on average a lower balance that your are paying interest on each month etc.....and read a lot about comparing that method vs just applying extra principle to your mortgage.

They may do it with just a lower LTV 60-70%.If they wont give you the HELOC I dont see why they wouldnt just let you open up a secured line of credit with the duplex being the collateral

I kept telling every landlord even if your place is brand new, rent is way lower since 2015.

., tear out to studs) to be livable by lower middle class standards.

His current annual debt service after refi is significantly lower than what his annual lease would be years 1-5 with 3% annual increases.

I refinance my current loan, an FHA, into conventional (my FHA is at a 3.35 APR...hard to beat) at a higher rate, PMI will come off, and then the loan payment may be the same or slightly lower by $50-$100, and then immediately use FHA again to buy the new property, which is a four unit property. 

We were even offering a bonus to buyers agents, we often do on lower priced stuff.

I put in $800 (a new fridge and stove for lower unit) after closing.