We haven't appraised the house after a couple of things that we have done on it either so...that could give us some more equity to work with. 

For the first 6 months I ran it as a Airbnb after that I converted it to a long term rental.

For the first 6 months I ran it as a AirBNB and after 6 months I converted it to a long term rental.

Assume there is a way to categorize it, track individual expenses, then have cash-flow reports for income/expense come tax season.Thanks!

It automatically makes the home look more cohesive, and won't break on you after 2 months! 

I pay myself on a W2, I've submitted my tax returns and a bunch of other info to them, now they want to see the company's financial records.

If people are getting free electricity and water, they tend to be a little less frugal :) .Then check on insurance costs for a MFH and add that to your projections.Finally, talk to your contractors and see what requires permits, what their experience has been in getting them to pass inspections, the timeline and the cost.Factor all of these into the decision to move forward or leave as is - maybe advertise it as a 4/1 with a home office with outside access and get more rent that way.One last point - I hope that the addition you mentioned was done with permits and is reflected on the tax rolls because if not, you may open a can of worms you wish you had not.

However, rate would be prime + index + an additional +2% for the shock factor just to qualify, but you can draw the funds whenever you want vs cash out where you have to draw all the money after closing.Many borrowers would keep opening lines of credit, assuming you have the equity + income to qualify, as you keep rinsing and repeating the heloc process.

The property cash-flows at about $1200 after all expenses.

That's less than 22% of the taxes owed!!!!