You would just need to screen very well and be prepared to have a little more work to manage the property than say a single family home out in the suburbs. 

Also like Nathan said, depending on your criteria, it may still be a good deal if you are only paying say a few hundred per month to live.

since she took profits from the say as part of a corporation that flipped the home.  

To further complicate the initial question, how would you handle an expense that had to be capitilized, say a new computer for example.

So if I can wanted to do a house hack on let’s say a duplex but it is fully occupied and the tenants both have long term leases, then I can’t break those leases and I will not be able to House hack this property?

Like they say a C and D neighborhood looks good in a rising market and when the tides turn its interesting to see who will be left with no clothes on.CheersAmit

Id say a open heloc is better than cash if you want reserves.

HELOCs could work, as they are lower interest, but again, if say a worldwide pandemic comes and effects collections, you would owe the interest on the HELOC, whether or not your sponsor is making the distributions.  

I'm just weary of putting money in retirement accounts in general if theres not a large tax advantage over say a 1031 or similar exchange. 

Let's say a 2019 Dodge Ram Pickup.