Depending on your current living situation, you could do both. 

There is some additional information that wasn't mentioned in your post above which sheds a different light on the situation.  1.

What's the best way to handle this situation? 

You will want to talk to a CPA to see which hours count and which hours don't as there is a lot of gray area with your situation. 

And having reserves or cash flow is key - will help you absorb any unforeseen situations.

Everyone’s situation is different, probably every year. 

1 very common thing in Memphis is that almost ALL property is listed too high for numbers to make sense.. and if its listed at numbers that work, then it creates a multiple offer situation and investors end up paying more than they need to.

I am very big on building equity, largely due to my career situation.

85% LTV is possible in the right situation.

Some people in your situation do decide to rent by the room but it is location based.