That would be no money out of pocket and cover the 2 months or so (seasoning period) of home equity loan payments plus a little reserves.

Definitely start jumping into the community here and feel free to ask any questions related to Real Estate investing!

Consider:  cash flow IS NOT directly related to the neighborhood;  it is related to rents in the neighborhood vs the FMV.The "working class" was my target market too so I understand that priority. 

I am thinking that the tenant is also a relative or a friend.

I do have a check list of questions I make sure I cover on phone calls.  

His business fors check out on the Nevada Secretary of State website (all businesses operating in Nevada must register) and he appears as the primary on a number of real estate related businesses.References might be as difficult to vet as the lender.Thanks for the help so far . . . 

It might be a good idea to speak with your realtor about the comps in your area to make sure the money you put into your current house will be covered if you need to sell soon for whatever reason.

Definitely start jumping into the community here and feel free to ask any questions related to Real Estate investing!

I was cautioned by an attorney to never sign anything in my personal name related to the LLC but rather to sign: "by (signature), president" I have been unable, however, to open a bank account for the business.

If a SFR has a finished basement with a separate entrance, it could be a great opportunity to turn it into a secondary dwelling unit/duplex for a relatively small Reno cost.