But the cost of maintaining and filing an entity correctly is much higher and also needs to be considered. 

Let's say at 6% over 30Yrs will be about $960 per month(Principle/Interest) with the remaining  interest only portion $40K costing roughly $200 per month. $1500- $960 + $200 IS $340Cash in your pocket after everything roughly $1500-$1160-$340 which is not bad for a 100% financed deal(INFINITE RETURNS)Now, If you ran this analysis on a 1% deal as @Nicholas L. mentioned you will undoubtably end up in the red each month.All the best!!!

You should think through how much this will cost with architectural drawings, a good GC, etc.

@Joseph BinkowskiDon’t forget that you can now be qualified as an accredited investor by passing the series 65 exam without any income or net worth requirements.It will cost you around $200 to $300 and will be valid for 2 years (unless you can park your license with a financial advisor firm, then it will last as long as you maintain it).It is not a difficult exam and you should be able to pass it with around 40 hours of self study with a good prep book or website.

House hacking by purchasing a duplex, triplex, or single-family home with extra rooms can help you reduce or eliminate housing costs while building equity.

Background on me: I need to obtain a graduate degree for promotion at work, but it can be in any field at low-no cost to myself.

They often pay out replacement cost value (RCV) for damages.DP-3 (Special Form): The most comprehensive DP policy, DP-3 offers "all-risk" coverage for the dwelling, protecting against all perils except those specifically excluded in the policy.

-While rent would be more expensive month by month, the idea of being able to take my equity out of my home and also being able to reduce annual repair costs, property taxes, etc. does seem appealing to me. 

We're looking to gather info about likely cost, pitfalls, time required, considerations when obtaining financing, etc. 

You sound like a free-spirit and sounds like you want to travel and be unburdened....I like the RV idea, as well as the settling in Nashville eventually...