After working my own numbers on the property as it currently sits its yielding a Cap Rate of 5.2% generating an NOI of around $11,700/yr. 

This would take one of the payments off of the table and allow you to generate more cashflow since you aren't funneling it into one house payment.

My county will also take into consideration the amount of income I'm generating on a property.  

You have to love it when guys in the real estate investing niche use affiliate links to generate extra cash.  

I was wondering if there is a natural tendency for Real Estate Investors to be drawn to this type of "investing" - investing your time and internet marketing savviness to generate passive income producing assets like web pages, affiliate marketing content, etc.  

Now - the fact that BP is now breeding a generation of newbies, such as perhaps yourself, who would rather take a short-cut via an app rather than truly understand how things work is scary to me - very scary indeed!

Self directed IRAs are great for investments that generate passive income that would otherwise be taxed as ordinary earnings.

Would you suggest looking for the 70-80k SFR's for now until im able to generate more capital for a larger down payment?

We did discuss about the possibility of using 1031 exchange on the lower unit to defer taxes and purchase other investment properties that generate higher COC % than if we choose to keep and rent it.

Iif you are starting out and have little to no funds, I'd go with borrowing as much as you can for as long as you can.If you are an intermediate investor has good cash flow generating, you may want to mix it up with some 30 yr amorts, and some 15 yr amorts.If you are a seasoned investor, maybe not acquiring as many new properties, looking to ratchet down a little, then maybe go all 15s.