Giving up a bathroom at first and maybe a room later to increase this area demonstrates a calculated approach to realizing the full potential of your property.It's important to think about a few important elements before making any selections.

Tenants don't really realize on the west coast it is MUCH cheaper to rent than to own.

I do not require a crystal ball to look at these facts and realize that many residential purchases purchased at this time will need some good fortune (luck) to provide the returns I seek.  

First - realize that AirBNB usually makes a lot more money than a long term rental (based on having a good occupancy rate <# of days rented per month>) ... but that all comes with the responsibility of continuous turn-over - where you likely need a cleaning service, etc as a support staff - unless you are going to do that yourself.Second - When looking at renters - the reason many renters rent is that they DO have poor credit scores.  

If you see 0% vacancy rate, it may be an indication that the rents are too low, or have not been raised in awhile, and the tenants realize that and therefore don't move. 

I do realize that the climate has changed since this question was posted, however, selling a note in good standing in these times should not be too difficult. 

Equities will realize this the hardest in October but at first once we past the Sep FOMC, at this current rate.

As someone who invests heavily in Philadelphia, I can also say the price point you are targeting is going to lead you towards neighborhoods where the BBRRR strategy doesn't often lead to realized gains that correlate to the appraised values.

I laughed and stopped listening to the guru when I realized that you can't just tell people that their money is secured by real estate and that in 2nd position they will ALWAYS get paid.

That may backfire, and it will only antagonize the tenant when they realize no one else in the building got anything near a high a raise (see "discrimination lawsuit" exposures, above).Others may disagree, but I am with you.