She asked for more cabinet space to store food for her kids.”

Lesson learned: tenant screening is critical.So next time around, I decided to stay anonymous (for safety, since I live alone), and I hired a property manager hoping they’d screen better.

Renting out rooms will require you to modify any existing lease you use.How will you address:- Utilities- Food- Bathroom times- Parking- Privacy- Toiletries- Laundry- Etc.

Lack of experience isnt necessarily a problem so long as the competence is clearly there and there are healthy margins of safety in the deal. 

I would have the safety net of $40,000+ sitting in an investment account, and Ill try to save as much as possible per month to counter any large vacancies in possible recession.

The ones who are well funded and can cover the short term set backs do fine, the ones who end up shocked when they deal with Johnny food stamps punching holes in their walls for the 1st time and panic sell, don't. 

These aren’t cosmetic fixes; they’re essential systems that affect safety, functionality, and long-term value.Given the $1,500 plumbing bid and a $16,000 HVAC replacement (plus other minor repairs), asking for a $10,000 price reduction or credit toward closing costs is very reasonable, not greedy.

I have them sign addendums to the lease that state how to treat areas of the home, ex: kitchen sink, no grease/food items (scrape your plate in the trash) toilet: only the 3 P's, no flushable anything, I even provide them 4 high quality AC filters and have them set a reminder on their phone.I like the phone reminder.

Quote from @Stacy Raskin: DSCR must be rent ready or rather when the appraiser does the appraisal he must mark the box that says "as is" and not "subject to" which means that there is no work needed that is health and safety related.

Just make sure it’s titled in both your names if you both go on the loan.Option 3: Use Cash — Least Risk, Least LeverageUsing your HYSA/CDs can make the deal stress-free and get you better pricing with sellers (cash closes move fast)But: It kills your liquidity and limits scalabilityIn an inflationary market, your cash is losing purchasing power unless it's working for youA smart hybrid: Use cash for down payment + closing, finance the rest with a loan (conventional or DSCR), and keep the HELOC untouched as a backup reserve or for rehab funds.My Recommendation: The “Hybrid Stack”Based on your situation, here’s a strong game plan:Use the HELOC for the down payment (this lets your cash stay liquid and interest-only eases the early cash flow drag)Finance the rest with a conventional loan (fixed rate, long-term hold benefits)Keep your cash reserve as a safety net for capex, vacancy, or a second dealThis gives you:Flexibility (via HELOC)Stability (via 30-year mortgage)Liquidity (keep your cash!)