First of all, I wouldn't start the relationship out with dishonesty- whether you tell them or not, they'll probably find out you are the owner and that will be way more awkward than any other conversation you have, so be honest from the start. 

It might be better, but consider the use of space that you have.The layout in general seems a bit awkward, but moving plumbing can get expensive. 

I got the impression they'd lived there for a few months under those awkward conditions! 

Hi Ben-Congratulations on getting started and great question.Personally, I think it is better to cut your teeth with single-family before scaling with multi-family.Additionally, I recommend using a property management company to handle the leases and tenant issues even if you rent rooms out in a single-family rental.The reason for this is they will know local and federal housing laws and keep you out of the weeds and out of trouble.Additionally, it provides a shied from awkward moments in the house or with a tenant over unpaid rent or difficult behavior.

Though his awkward trick was easily handled by attorney, it costed me extra $$ and time to get him out.I asked my PM to install security system there and paid him  deposit for repair.

Two of the units have very awkward layouts/floorplans.

Rent Payment Made Easy: Online Rental Property SoftwareCollecting rent from friends can sometimes lead to awkward conversations and delays.

Now for the majority of us, it feels awkward when we don't have our phones nearby.

Either way, thanks for the insight - though I know several custom builders here locally, I never really have taken the time to ask them what kind of margins they are typically looking for...probably because most of them are friends of mine (and one of them built my current house) and that could potentially be somewhat of an awkward question for them to answer based on that relationship.  

The US system is built to be awkward and imperfect with the three legs of government.