I didn't do the math; but I know it is not 1%!

Maintenance etc est = 150 (for easy math) vacancy = 0% (for easy math) -> Alternative cash flow = 1000 - 850 - 150 - 150 = -$150/moSo in this set up I'd still be negative cash flowing, just way better than if I was in a rental.Now, the only part of this comparison that I haven't quite gotten my head around is the ROI -- the rental purchase requires an outlay of several thousand in cash down payment that the rental doesn't.

If it needs other work, the math stops working pretty quickly.  

We're in the process of learning everything we need to know before starting to invest but I feel i'm missing something here with the numbers game. I'm looking for lasting, generational wealth by building a portfolio. ...

I have done the math and it will cash flow immediately nearly double the estimated mortgage(piti) and has long term tenants in place now(6yrs).

HELOCs have no Fannie/Freddie specifying how the math is done.Each HELOC bank makes up their own rules for how they calculate things. 

You can still check the math on what your cash-on-cash return is per quarter--it's nice to present to investors and for valuation purposes--but from a waterfall perspective it's not relevant.

Hell no.Let's use your math and go with some conservative appreciation estimate, say 5%.

By my rough math, you have 44k in current equity.

I guess I didn't literally mean "these are your two units and these are mine" it's just a simple way of looking at it for running the math to see what it should be worth to me.