First if you think market rent is 1200 charge them 1200, why would you choose to supplement their rent out of your own pocket to the tune of $100/month.Second do not provide them a term lease.

Suggestion: don't take one person's view as the sole truth and stop there, instead supplement what you read by also chatting with experienced lawyers/lenders/investors and looking at the actual legislature.2- research High Cost Mortgages and High Price Mortgages.3 - sign up for news alerts from HousingWire and InsideARM.

The only way to combat this is with a much lower purchase price, where your high cap rate and low basis can overpower the financing disadvantage, or with some type of supplemental financing.  

You can supplement with more REI using available funds and when you finish your commission, you can complete the portfolio and reach your Time freedom Point.I'll be happy to discuss this in more detail with you.

Most banks will lend 75% of the purchase and if you get supplemental financing, like a seller carry back, they will reduce the amount they lend to you.

I am a 58 year old retired teacher looking to invest in rentals to supplement my income and pay off current mortgage. 

@David Antunes 4 unit properties are residential...valuation is comparable sales method...in very rare instances you'll see income approach...but only as supplement.

I have some good automations built out for mine as well that automatically emails my housekeeper when I get a new booking and sends emails to my guests automatically during their stay that I supplement with Evolve. 

It's very stressful trying to decide what's the best way to invest the small amount of money that I have, especially knowing that the decisions I make will affect how my retirement is supplemented in about 10-12 years. 

If existing sheetrock can be replaced (or supplemented with) a product like Quiet Rock (sound dampened sheet rock) or Green Glue (sound dampening material that goes between sheet rock / drywall layers) I think you would get a significant reduction in conversations being heard in adjacent rooms.