Also, its good to hear that the termite inspector doesn't sound too concerned, that is always a positive!

I have been in my home for about 6 months and don't have enough equity for a HELOC.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

So me and my future wife have seen hours of videos on the BRRR method, ADUs, cash on cash returns, and utilizing the way of adding equity into a home.

Fortunately I am in a position where we do not need to optimize the revenue on this unit.  

With built in equity .

It was sufficient for its purpose but will not provide me with any additional equity with the bank down the road to be used as leverage for the future.

Despite the possibility of higher interest rates, they can have more accommodating qualifying requirements.If you currently own homes with a sizable amount of equity, you may be able to get funds for your down payment through a cash-out refinancing or a home equity line of credit (HELOC).

I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation.

In a few years you can use the built up equity to purchase additional properties.