Our first purchases were ones that we lived in and added value while we learned.  

there is an argument to take the equity and buy a large managed property. 

It may not get the number of wind/hail storms like TX does, but when the storms do hit in MN, they're usually very large systems, and produce awful hail damage. 

To answer the OP question, I would be ecstatic in my market in class b or better area if I could purchase break even day1 on cash flow rent ready, or not rent ready where the value added is at least 2x the cost of the value add, at 80% LTV.  

look at Rural Japan its closer and much better tenants you can buy homes there for 40 to 60k that rent for 500 to 700. never a worry about tenant issues like your going to experience with C class US tenants.  800 sq ft is a very large home in Hong Kong if your not living with family and your maid in the same apartment

I just added those 2 podcasts to my list on Spotify, thanks for the rec. 

Adding in the layer of not being on the loan but holding title just sounds like it will eventually lead to problems like OP experienced.

The new design takes the home from a 3 bed, 2 bath to a 4 bed, 3 bath, 2,400 sq ft rambler on a large lot in highly desired area.

Also, it's likely that a slightly smaller amount of each payment will go toward principal since the loan balance is higher and the rates are likely nearly the same once the MI of 0.5% is added to the rate.

For example: A small town has a large employer close down.