I'm trying to understand how house hacking is so profitable, putting down so little money, 3.5% or 5% would make for a hefty mortgage payment wouldn't it?

Do I put more money into these deals, or do I accept a dilution of my shares and put my money elsewhere?

Providing advice without understanding the full scope of your business and its operational plans could result in inaccurate guidance.As a hard money lender, I provide financing options for both DSCR and fix-and-flip loans.

It’s like moving money from your checking account to your savings account. 

The loan gets paid off first and any money left over is you “equity” and comes to you. 

Even without the cheap money and the cash flow, I always make the rental as sound and maintenance-free as possible before occupancy.

@June Broce We do a ton of Transactional Lending for wholesalers looking to double close, some investors who are doing seller finance deals or same day purchase and refinance into a DSCR loan.If you can assign the deal and save yourself some money, it's the better option but I 100% understand why someone also prefers to double close and secure their profits depending on the scenario.With that said, you can buy/sell the land SAME day for a legit double closing. 

HELOC is a form of borrowing money.

The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money.

However, there is a difference between just turning a profit and making enough money to get a decent return and justify the hassle and the risks.