Any help will be greatly appreciated.First you need to determine if the appraisal is accurate.  

I used to own three rentals in Seattle but after 2012 when the prices got too high I realized that sophisticated buy-and-hold investors invest where the numbers make sense with cash flow, not appreciation (gambling).

Using the MLS to get accurate comps is great to help determine value and ARV's but getting MLS access isn't going to be a deal finder.

You'll need accurate books to keep track of your business income, expenses, and properties.

So yeah, your 20%+ is much more accurate. 

Having accurate numbers will help you feel confident that even when you move out later, the property will still cash flow.I run a property management company here in Cincinnati, and most of our clients started out the exact same way you’re planning to, buying small multis, living in one unit, and building from there.

Without honest, accurate numbers...it won't work...but if you do get legitimate prices you will be good to go.

Were the numbers accurate?

Who knows if this is accurate, with the constant revisions and mistakes in job statistics, as I wrote about last week.

As a result, it’s worth it to invest in getting a strong Real Estate Tax Pro that can help guide you through maximizing the benefits of REPS and accurately filing. ....This post does not create a CPA-client relationship.