That was all the draw my wife and I needed with all the other factors considered.We used the first-time homeowner USDA financing on this home and got a great rate.

I think w/ the 70% rule, that would give us a max of $90k to draw on?

It may be a bit more hassle but inquiring on the ways you can get your rehab money included on the HUD and do draws can be a way around this.  

Alternatively, you could also work with a HML, they are more expensive but do give you an extra set of experienced eyes looking at the project and someone controlling the draws to ensure work is done before a contractor is paid.

The remaining $114K ($120K income less $6K) you then divide that 50-50.

That divided by your tax savings ($300-$500/yr) is the number of years it takes before it has a return.  

@Vera Berishaj you can get an 80% LTV Heloc through Pen Fed on a rental property if it is held in your personal name and not an LLC, and you have 3 properties or less including your primary residence. 12 year draw, no closing cost unless a physical site visit appraisal is required, if the LOC is closed within 2 years they back-charge you for the opening costs ($400-$600), rate is variable tied to prime + 1% and you choose p/i or i/o payment.

But you can draw on it and pay it off and draw on it and pay it off.

A partition action is a lawsuit amongst multiple owners to divide the property... can be complicated and, when contentious, expensive. 

If i move to a market to start up, i'd rather it be a fun market to live like Nashville opposed to some of the other cashflow markets with cold weather and no big draws :P