Keep it as a safety net for yourself to make up for the added risk you are taking on with a less than stellar credit score.Good Luck!!

NOTE: It's the rare jurisdiction that will permit 3 people to occupy a 1-bedroom unit--it's an occupancy/health/safety issue, so check with your local zoning or housing department. 

In fact, I'll probably under leverage and take a lower cap rate (5-6%)  just to give me some buffer and safety for my first deal.

It's great having $50k equity in it for sure, but the monthly cash flow is the same issue as the other one.A commercial loans are the norm. 20 year with 5 year arm.

Interest on loan is 6% 20 YR  Arm. 25% down payment required.

Kind of a safety net in my brain.Bought and rehabbed 80+ more SFR's without leverage. 

Also note that our current low-interest rate mortgage was a 7/1 ARM will end in 2022 and we have to close a new mortgage. 

I personally would never rent out a unit with a single exit or other serious safety issue, but what if you make it safe but it is still not a zoned unit?

ARM rates tend to increase when the economy is hot and tend to get cut during recessions.

Hey, I can only take you at your word in regards to unbiased and arms length choosing of Title companies, attorney's, etc.But Adam Smith, an absolute genius IMO, kind of nailed it on the head with these words:"Men of the same profession gather only to conspire against the general public"Getting involved in the RE business has taught me to think in a much more elastic way than before.No one can deny, it's a high stakes game.And because this is a BP thread, sorry I will say it:  I learned the hardest meanest lessons via trial by fire.