The problem will be no larger than you allow it to be.  

I tend to have an easier/faster time renting my 2 bedroom units than the larger ones. 

you're not missing anything; i have the same worry about gator lending. however, sometimes people are looking for way larger amounts of transactional lending, for bigger deals. in those cases, it's more justified for them to need the $ IMO. but also, more is on the line, so you still have to really do your due diligence. if you're really interested in being a gator, take pace's program. i haven't, but if i was going to seriously get into it, i would. 

Im wondering if I will get in some sort of trouble.

Quote from @Jake Tiffany: Hey everyone, many of you send mailers, texts and all sorts of campaigns to try and find deals.

She does not have an on line mangement system though just sends a check each month with a little ledger of expenses.I have a client that runs a larger company and they do a nice job at least on all the deals I have done for them as a capital partner when I do the draws and look at my before and afters they do some really nice work in a timely fashion

6.125% has P&I of $2625/month.5.75% has a P&I of $2521/monthThis is a $104 benefit.Paying $4400 more towards principle will reduce your payment to $2598, a $27/month savings.Math says buying the rate down has a larger net benefit to you up front, but it will take you 42 months to break even.

I will say this is one of several same-size plots split from a larger one and the others have been split in half the same as I'm planning.

The larger unit will have higher maintenance/cap ex even with coastal environments being harsh on some items.I suspect your expense estimates are far too low especially if you kept the BP calculator default percentages.  

These are all LTR and while he would love some passive income (don't think he necessarily has to give that up) he'd much rather one of us get a larger tax return for us to continue buying more properties.