I actually aim for not having any one real estate investment make up more than 1% of my net worth.

Our lender has informed us that we need 12 months of rental history to use the actual rent for financing purposes, or we must rely on the appraiser's fair market short term rental value.

We've actually previously had two potential buyers come forth, one w/ $20k & one w/ $30k - unsolicited offers that we let get away before we even considered owner financing (or knew what it entailed).

We're actually looking in Hagerstown, MD; Erie and Pittsburgh, PA.

Congrats on achieving a comfortable financial situation.Condos are actually riskier than single family rentals. 

More of a re-set that seeing the numbers (prices) at which my comp set actually books- leads to.

so I can officially know about the dog, licenses, shots, etc.Thanks.You might not actually have any issue.

Either way, $600 in cash flow should actually help your personal DTI if you go for conventional financing on a primary again. 

I was actually just thinking about this the other day.

You could also get a line of credit for about $150k (you should be able to borrow 75% of the value.)The reason I suggest this is…1) you save $40-$60k in selling costs. 2) you have a lower blended interest rate (2/3rds at 3.25% and 1/3rd at 7 or 8% instead of the whole $500k at 7 or 8%) saving you another $1k/mo in interest. 3) you only pay interest on that $150k when you actually use it, not from day 1  Unless you hate this property, or want to buy something you can’t afford without selling, that would be my plan.