If you can even get it to cash flow neutral, at least you can hang onto the property indefinitely and if the market did take a downturn you could ride it out.

FHA allows 3.5% down on 2-4 units but you'll have PMI indefinitely until you refinance to conventional.3-4 Unit buildings require 20% down if you occupy one of the units in a conventional loan.

With taxes taking 40-60% of your 350k treasuries income and the official inflation numbers of 2.9% (real is prob 5-7%), earning 350k in this scenario is not exactly what it is cut out to be.You would not only need to earning enough to break even with inflation so that your 10 million today can maintain or growth indefinitely with out attrition.

He does seem to be irrational to have left at $450.00 a month rental where he was paying for electricity to move into mine and off the starting line not be able to pay a $40.00 transfer fee for his electric, yet be able to commute in his newer car (making Payments) and be able to pay for gas and eat out as he told me he does not like to cook.

He really doesn't have the money to keep up with the home payments and live the life he wants.He's agreed that the property is mine if I assume the liabilities on the property and allow him to continue to live there indefinitely.

I'd like to pursue a strategy of buy-and-hold for cashflow and potential for added value over time on property but planning on holding indefinitely for the cashflow.I think I'm ready to jump right in and "house hack" as a feeler and intro to land lording.  

Hey @Charlie Galaviz thanks for the shout out, and for jumping in! Definitely

Curious as to why you don't choose to do a cash out refi instead to still pull the equity out but keep the properties indefinitely.

Or can the tenant stay indefinitely?

I'm 51, and my goal is to get my primary paid off so I'm not stuck with that payment indefinitely.