My advice is that it is going to take longer than you think and be harder than you expect.

You're not obligated to take his solution.I would tell Title you expect your full EMD back. 

So sometimes you have to temper your expectations.

Its illogical in my book and If I couldn't figure out how to see my own asset, I'd just invest in mutual funds.

Good luck, and let us know what you figure out!

I guess, I am trying to figure out how all this really work.  

I am digesting what you said and figuring out how we can apply.

So, I would expect to lose 3 months rent maybe more.

If the marginal cost increase in buying a house that can be house hacked (a house with a basement, a duplex, etc.) is less than the rents you expect to bring in from renting the additional space, why not do it?

Or try the reverse - rehab a property to Class A standards in a Class D neighborhood and try to get a Class A or B tenant to rent it.Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.