The tenants in the front one bedroom are asking to use one as a storage as they have a second baby on the way. 

Great, thats what I was thinking too.

Since moving here I’ve picked up a new job, new baby and a new primary residence.

@Julio VelazquezI would say on a subject too, the sellers to target are those facing foreclosure.

If I continue to expand into it, I will need to hire an employee (headache of baby sitting) and potentially quit my job

We were fine paying a little more as we wanted the area for ourselves.Then within a matter of 6 months of purchasing, we found out we had our little oops baby on the way and my hubby landed his dream job about 2 hours away.

How do you handle emergencies caused by the guest (flushing a beanie baby down the toilet, let's say)? 

They canceled their flights and are driving instead because they have a young baby and just don't want to risk it. 

The baby is not crawling yet but it will soon no doubt.

What I mean is, we use a similar method as his Baby Step #3: Fully Funded Emergency Fund.