Even though it's one family, treat them as two separate tenants with separate leases.

They must have lived there for at least two of the past five years to qualify, and any depreciation claimed  during the rental period is taxed separately at up to 25%.

I am not sure what market your in but, something I've noticed here in Atlanta is that houses in the $200k-$400k range are still moving like hot cakes as well as the $600k-1m range are still moving.

This essentially frees up capital to move on to the next deal.

I have a large basement, but it’s too costly right now with these rates to add a unit, but I was thinking of finishing one side for tenants to be able to use in the unit that I’m living in (I will move out in the next year or so).

Keeping your business and real estate finances separate can also make managing multiple properties and loans much easier.

You have the right idea about using this first property's equity to move into those bigger deals.

Suggestions for how to best separate rental income? 

I currently have one property that i bought at a tax sale for 5k and are planning on putting around 15-20k into it. i will then either rent or prepare to sell. looking at neighboring prices at likewise houses i should...

.▪ Brief risk/mitigation bulletsDoesn’t need to be heavy, just shows we’ve already thought through the downside.Those couple of additions have made conversations with lenders much more efficient on our end, especially when moving from preliminary interest to real underwriting.Appreciate you sharing this, would definitely like to take a look at your full checklist PDF as well.