Most investors want a 12% cash on cash return, which works in this scenario if you are splitting the cash flow 50-50.Is there equity in the home that you own?

Yeah, not a whole lot off retail, but this would be basically no money down except closing costs, and would still cash flow about $300 a month, while building $10k a year and growing in equity.   

I've been waiting to stack this FNMA guideline change on top of Oakland's new positive view of in-law units to put a very unique deal together (oh stars and moons, why do you make me wait prior to aligning?)

We are mostly buy and hold investors but focus on forced appreciation to build equity. 

I contacted these references and both had positive experiences w/ Engelo and OCF.

I have not understood exactly what in which position/location breaks.

Are there any lenders who will do fixed home equity loans secured to a 2nd/vacation home, or an investment unit?

In terms of finding properties, it has its positives (most widely-used site) and negatives (harder to find "deals" here because the site is over searched with a lot of traffic).

So the first home purchase is scary but I think if your planning on living there for at least a few years you are more likely to do better purchasing it today than later.If you were purchasing this primarily as an investment my advice would be a little different such as do not pay retail, consider house hacking, your mortgage to expected rent is to tight to be cash positive with maintenance, vacancy, and cap expense added, evaluate exit strategies, etc. 

Hopefully the ROI will counter that and let me build equity quickly.