Hello fellow bp members,Ok, I am a newbie but I spend my every waking day studying, listening to every podcast, reading every forum, in an effort to gain as much knowledge as possible.

A cash flowing property benefits your DTI once it's been flowing long enough to hit your tax records... so realistically, you'd likely want/need to wait a year.

You are allowing a tenant to make a big investment into your property, no matter what you get them to sign to say they're doing it for their own benefit. 

You no longer get the benefit of refinancing it with 30 year fixed rate debt.  

In my short experience, the typical HML I’ve seen generally loan at 25-30% LTV with a note duration of 1-3 years, with the main benefits being a typically fast close and not having to go through a traditional lender for a Fannie/Freddie loan.

Hard to say what would work.Each individual has a different risk tolerance, amount of being passive versus active, needs cash flow today versus more equity growth on the back end, certain time horizon to stay in the investment,etc.Only the individual can decide what is most important and the best fit through research and self discovery.For me as a syndicator and sponsor I like deals where there is big equity gain on the back end for my investors and myself.

Anyway, we contact our lawyer and he walks us through how to get access to the property and abide by state law regarding transient housing as this was not a tenant but a guest and the laws of the state are quite landlord friendly in that case.Local property manager gains access, she’s not there.

To factor in appreciation, principal paydown, tax benefits, you'll want to figure your IRR. 

That way you actually own the property and can take full advantage of the tax benefits.- Tom

If...after a year or two you have observed what they do, how they do it and can see a benefit to doing the management yourself to save the money...then maybe bring it in.