Adding personal residence to portfolio

[Cristina Kindred]

we have had a four plex for many years. Rental history always has been excellent. We are in the position to move and considering options for our current primary residence. The way it is laid out we could 1) rent entire property 3 bed 3 bath home with detached building that has one bedroom apartment above. Max rent that we could probably see would be $1500. 2) (Pending code approval) we could possibly convert to 3 rentals low gross rent would be $2000. Just thinking that we could do a cash out refi (We have significant equity) combine this property with our current rental property and still have decent rental income with a 80% debt. We would continue to add properties and cash out to grow portfolio. Numbers including 4 plex with house rental $4300 gross monthly rent

Debt service on $240 k estimate pmt $1140

Property insurance $400 estimated

Property taxes $6000 per year estimates (We will lose our homestead)

I will self manage for now. 

I guess, the question is related to risk. One entire property rented that does not pay will really hurt! But, the investment to convert would be significant. But, its unlikely that you would have 3 nonpayers. Properties are located in a landlord friendly court system. Thoughts? Stay Single family (desirable neighborhood) or convert to multi?