They have utilized a number of financing approaches including: Minnesota Housing Finance Agency Tax Credits, Conventional, Grants through Duluth Economic Development Authority (DEDA), Duluth Housing & Redevelopment Authority (HRA) Assistance.Sharon Brown with Duluth's Life Safety office is a great resource as well when dealing with blighted properties.

In older times a strategy might be to rent to older, more "life experienced" tenants. 

I’m also at a life stage, where I’d prefer to just live with my partner and not rent out individual rooms in my unit.When I move out, the rental income would sometimes just barely cover the mortgage and taxes (usually not even insurance).

Do you want to live here 1-2 years and then buy something else, or is this your near term home until something in your life changes (kids, job)?

Have a specific situation in my life.

Plus, having an income-generating property while living mortgage-free in Sacramento could offer the best of both worlds.But hey, I get it-sometimes a debt-free life with no tenant hassles is hard to pass up.

Ehh, IMO the simpler the better. 

It's a very desirable area, and it's a good property, but I think a few quality of life things are holding it back.

Alternatively, you can own the rental directly, take the income directly and simplify your life, taxes and everything.

So, think of this model as the financial life a child would receive had the parents stayed together.