For secondary heat you could install inexpensive electric baseboards and the tenants would only need to use them when the temp drops below -15 I believe, depends on the heat pumps that you install.

The big issue I see at the moment is that 203K loans disappeared from the secondary market in March and only 2 have come back so there is not a lot of pricing competition at the moment.Originally posted by @Christopher Miller:Thanks.

I’ve got some math to look at.

Back of the napkin math tells me that if I could secure a line, we could buy several (3-5) small rental units and not have to average huge nights/year or income/night numbers to cover both the LOC as well as conventional mortgages on the new properties. 

@Brian Valdivia - Thanks for doing that math.

I'd rather understand the math and the formulas behind the profit margin.

That's a secondary concern.

They can bend rules conventional lenders can't because they aren't selling the loans in the secondary market.

I have went to Flagstar Bank & some other mortgage lenders in kzoo all seem to say its not worth a refi as the interest rate on a secondary is much higher than 3.99% I'm stuck with where to go.

I've also considered 203k / FHA, but because I've been contracting less than 2 years, I need to wait until next year.I'm planning to sell, but I was considering renting as a secondary exit strategy.