Not sure how you plan on purchasing this property but for the sake of this exercise Ill assume you are going the standard route with 20% down.

I'm hoping this plays a role when I go to get the mortgage.

I think it's amazing that a guy like me that has no business being successful (as I never really had that role model to show me the ropes) can find not only the information, but experiences of other professionals, the finesse to get it done right, and the balls to be persistent...excuse my French!

The lesson learned ... 1 - It's good to know your lease clauses inside and out and not need to exercise your authority.2 - Use spouse as a "higher authority" figure to buffer conflicts with women tenants.3 - Draw on the collective wisdom of my BP family to vet responses to difficult situations.

Intent does play a role.

Can the tenant-buyer upon exercise of his option ask the bank for a loan remodification since he is the principal homeowne now?

The exercise will verse you so you can rebut any ney sayer later.Understand the inability to finance can be doing you a favor.

My husband and I owner-occupy a duplex, but I take my role as landlord seriously and want to be the best I can be even if we only have one rental unit.

Cons:Illiquid, especially when you need it.I'm sure other factors like the pros/cons of depreciation, pros/cons of inflation, etc. play a big role, but I'm not thinking that deep… yet.

If Bruce Norris is correct and the prices will go up 20%/year in next 2 years (I assumed that the property is in Riverside), then you may be lucky and make some good money.Maybe a lease option would be better, if the price goes up you exercise the option, if it goes down you lose the deposit?