I think its not a terrible idea at all and should be pretty good idea actually.I'd recommending reading this "House Hacking" book from the BP Bookstore as your best bet for next step and understanding this process!

Stop hanging out with your deadbeat buddies that spend all day drinking, talking sports, and otherwise wasting away.

Stop hanging out with your deadbeat buddies that spend all day drinking, talking sports, and otherwise wasting away.

You bet!

It might help pay for your expenses if you house hack but I bet the number of markets a 3.5% down payment is cash flowing has shrunk significantly over the past 2 years.

I didn't stick around to see it sell but I'm betting it went to the plaintiff.Here's a question... if you could successfully line up financing in the period between the sheriff's sale and the confirmation hearing, could you close with bank financing?

Talking to a local like Greg will always be your best bet.

And, I'm willing to bet that most landlords don't do much better than a 10% annual return on their funds.

If you want to bet on this, you can wait for a couple years before doing your cash out refinance.  

Due to to small location wouldn't necessarily bet on cap rate compression.