As you know, you have three sources of income/wealth: cash flow, appreciation and mortgage pay down.

Here is what the numbers came out to:$50k unsecured loan at 8% interest from Huntington BankPurchased property for $40k- used the remaining $10k for repairs (repairs should take max of 2 months)Rent house out after repairs are done for $900-$1,000 per month  ARV of property is $60k53rd Bank offers 90% LTV refi after 6 months seasoning and $195 processing fee at closing- Refi property for $54k on a 30yr mortgage at 5%Mortgage payment including taxes & insurance= $436/monthCashflow= $900 - $436 = $464 gross cash flowRemove 20% for cap ex/vacancy/other expenses (round up)= $100Net Cash flow= $364 monthWith the 90%LTV refi I am able to get my initial $50k back from the unsecured loan plus $4k.

How do you calculate the value of not having a mortgage? 

I didn't have any plans to invest in RE when I bought the house, I just knew that I didn't want to waste my money by paying someone else rent when that money could be put towards a mortgage.

Since the average market gains will outstrip the interest that you're paying on your mortgage. 

.$49,900 asking price$42,000 purchase priceINCOMERent- $1200/monthEXPENSESTaxes- $103/monthINS- $30/monthVac- $84(7%)Repairs- $60(5%)CapEx- $60(5%)Prop Mgmt- $120(10%)Mortgage- $333(HELOC PMNT @5.75%/30YEARS)MONTHLY EXPENSES$790/MONTHCASH FLOW$410/MONTH$4920/YEARCOC ROIPurchase PrIce $42KClosIng Costs $1680(4% of PP)Rehab- 15KTotal Invested $58680.00CoC ROI 8.384%TIA for takIng the time to look thIs over.

FYI it's generally going to have to be "dumb person and toddler" proof to close on the purchase ("dump person and toddler" proof is an easy rule of thumb for when an appraiser is required to call something out as a "health and safety" hazard), assuming you are getting a normal mortgage.

Since we are also occupying the space how does it work when it comes to mortgage, mortgage interest etc?

Maybe a finance-related position with a company in the real estate space like a construction company or a bank / mortgage company. 

I thought about renting but would barely make the mortgage, which doesn't seem smart to me.