But make certain you have the SOR/WWU from the HUD approved FHA 203k Consultant first, prior to getting any contractor to submit a proposal, because the contractor proposal needs to be based on the Consultant's report. 

When I wrote my post, I was assuming @Tyshawn Best will be approved to refinance without including any new rental income.

Approval for 35+ townhomes on the property from Dekalb county in 2011, open to reduced density as the area has changed in the last decade.

But when I mentioned to the rep helping me that I might use some of the HELOC funds to invest in other properties, she advised me to not put that in my application because I wouldn’t be approved.

My landlord owes $350,000 on a 2 bedroom townhome in the Bay Area (estimated value $830,000).Based on my current downpayment, and ideal monthly payment, my lender has pre-approved me for $700,000 at this time.

Get pre-approved with a lender first sir.

I analyzed a different potiential deal but this time sent it to a HML they liked the deal and pre-approved me.

Treat the mother and boyfriend as totally separate unauthorized occupants and let them know your process for getting them approved, or to vacate.Then document all your attempts to get in contact with the daughter and collect her rent.

I know switching a single family into a legal multi unit can be awfully difficult to get approval for- I wasn't sure if it was the same for adding units to an already existing multi.

Like @Nicholas L. said, I can probably find a way to get approved for another loan with a down payment but I am then going to have 700-900k in debt on my two properties.