It's better to fall into the category of investor 3, but even those investors fail to maximize the benefits of the equity they generated.Investors in category 1 & 2 generally have a difficult time with dispositions.

In real estate, a broker or a salesperson can be the agent of a seller or a buyer.Here’s a list of the fiduciary duties that an agent owes her client:Accounting: The agent must account for all funds entrusted to her and not commingle (combine) client/customer funds with her personal and/or business funds.Care: The agent must use all of her skills to the best of her ability on behalf of the client.Confidentiality: The agent must keep confidential any information given to her by her client, especially information that may be damaging to the client in a negotiation.Disclosure: The agent must disclose to the client any information she receives that may benefit the client’s position in a negotiation.Loyalty: The agent owes undivided loyalty to the client and puts the client’s interests above her own.Obedience: The agent must obey all lawful orders that the client gives her.

What I can tell you is that if you get caught renting out a unit like that my guess is fines will out weigh the benefit.

I used the 5% conventional and especially if you're looking to build equity there will be benefits to doing so.

They are higher touch and based in CA, which would be a benefit to you.

Using your VA loan benefit is another great way to get started in real estate investing.I’m active duty Air Force with four properties.

I personally buy buildings that either have limited commercial exposure in relation to the total units or building SF or alternatively buildings that possess commercial spaces that are large enough where placemaking can attract amenity tenants that benefits my residential real estate in close proximity.

You are tying to separate them but keep them together where it benefits you (premium cost saving).

The VA loan benefit is one of the biggest perks of being a Veteran. 

Not only to ensure the networking happens, but the benefits of being the ringleader are endless.