Hello  @Thomas Sheehan,If your goal is to invest in an apartment where you don't have to concern yourself with maintenance and cap Ex, this deal (or perhaps another with similar rents and lower price) could make sense.The downside to deals like this is that your rents could eventually hit a ceiling as newer apartments (some with more amenities) become available.

However, as you mentioned, the lender is referring to Fannie Mae guidelines that say PMI can't be removed until after a two-year seasoning period, even if the renovations themselves have lowered the LTV.Fannie Mae's Policy on PMI Removal: Generally, Fannie Mae guidelines allow for PMI removal if the LTV drops to 80% or below and the homeowner requests it after the loan has seasoned (usually 2 years).

It was a cut and dry project and since it was my first deal it was an easy entry having already been slightly remodeled.

And you'll likely want to consider more fringe & cheaper areas for lower prices & better cash flow.I bought a 3-unit building in November last year when rates were 8% using a renovation loan (5% down), made cosmetic renovations to the units, and then we got way stronger rents than expected.

Plus, given where rates are right now, I genuinely believe we're at or near a local peak.I expect rates will head lower soon, maybe revisiting 6% in the coming months.

And i think there is an irrational thought process that rental property is easy and there are going to be years of no issues this simply is not the case and especially in lower value markets that are renter dominated this is well documented on BP..

Overall, though the cash flow in my market may be lower, the strong appreciation has made for a higher total ROI and I've continued to buy here. 

Most of my really really high returns are in the lower end of that spectrum.Is there a delimiting factor I use, not particularly.

Living in one unit and renting out the other helps you scale quickly because you need a lower down payment for a primary residence. 

It would lift the value of all the leased land cabins and lower the value of all owned land cabins.