If you buy a house that is worth 100K for 50K and then put 20K into it, that's a great deal but that is 70K of capital you are tying up.

I'm trying to do what I can tie it up equitably, so I appreciate everyone's input here.

Rent appreciation ties into actual appreciation.

I have the remaining balance in cash but that ties up a significant amount of capital and overall isn't really justified in the ROE.

Additionally, many loans are tied in with the government and by concealing the transaction from the bank, the insurance company, and the government without full disclosure you might be breaking the law.

You are all set to begin your search.I work with a lot of out-of-state investors that like investing in Columbus because it is an investor-friendly state and properties have good cash flow and stronger appreciation.

I'm still researching the DST since there are fees and I'm not sure about having money tied up in something I can't really control. 

Now Triplexes and 4-plexes are allowed too.Happy to chat with you more in-depth specifically about your goals and how they tie into REI.

It can be a great opportunity to run an STR for those three years that he says he's going to be there and build up a bit of a stronger reserve fund for when he converts to medium or long term rental when he moves out. 

I rarely negotiate on lease terms with my tenants, and any concessions are going to be tied to lengthier leases.