For funds that are already in your retirement account (e.g. a former employer 401k plan), rather than weighing the pros and cons of investing retirement vs non-retirement funds in real estate the more salient comparison point may be whether you are better of investing retirement funds in real estate and other alternative investments vs. traditional investments (mutual funds, stocks, bonds, etc.).3.

This may not be a primary avenue, but it still has the potential to pay off in the end.The key is to get yourself out in the public.

The strategy would work  better if it were your primary residence, but it becomes more difficult if you're trying to convert a SFH to a true two-tenant duplex.1) You'd must likely be violating zoning (Unless area was zoned MF), so you'd have to hope the conversion flies under the radar.2) Utilities is the biggest hurdle, as a SFH only has one water, electric, and gas meter.

We also have ability to access to home equity lines of credit from both my rental property (has 500k or more of equity) and a smaller amount of equity on our primary home. 

@Casey BriggsIf this is primary residence; there may be restrictions with lender.  

The ADA, a part of the Civil Rights Division, while not an authority or enforcer of this subject with regards to housing, is used as a primary source and baseline for all of these laws and acts relating to disabilities.Also, the ADA states that "Dogs whose sole function is to provide comfort or emotional support do not qualify as service animals under the ADA." 

However, there is a part of my mortgage that says I need to use the condo as my primary residency. 

But I realistically need the equity from my primary residence to close the deal.

Is it investment property or primary?

Our credit scores are a little low for traditional or even fha financing...plus the financed amount would exceed fha limits anyway.I can get a hard money loan, repair credit while we fix up the house then refinance in a few months.