I treated it as a bonus on top of my full time job.

Add a bonus for deal found. 

A seller selling instead here is a 5 cap and when leased up a 7 cap doesn't fly unless the area is just A++ incredible and very strong rent growth is occurring.It's all situational really and up to each investor on what they will accept.If you are syndicating value add then generally you have hurdles for investors such a 4% pref year 1, 6% year 2, 8% year 3 but their equity growth is the bonus for value.

A bonus of sorts, but paid as interest.  

Whoa - BONUS!

It is still a bit tight, and with houses slightly larger starting at about $300k and going up quickly, we are going to add an extra bedroom and bathroom as well as a bonus room in about a year, after we get married.

Do you see it as "just another renter" (and also assume $0 property management) or do you see it as a "bonus" in a way because if you did NOT live in the multi family, you would theoretically be paying rent, anyways.I am looking into some California markets, and as we all know, a lot of the rules of thumb don't apply here (for example, 1% rule, cash flow, CoC ROI ~5%).So I have to adjust the knowledge I've learned through BP podcasts and forums to even consider any deals.EXAMPLE of a QUAD (2bed 1 bath, 2bed 1 bath, 2bed 1 bath and 1bed 1 bath)  Total purchase price: $750,000  Down Payment: $150,000 (20%)  Mortgage Amount: $600,000  Interest Rate: 4.25%Therefore,   Principals and Interest, Property Taxes, Insurance: ~$4000  Monthly Expenses (CapEx, Vacancy, Maintenance, 0 property management fees): ~$500  Total Monthly Expenses: $4500Assuming I can rent the 2bed 1 bath units at 1200 a piece,  Rent for 3 units: 3x1200=3600. 

Bonus for when tenants renew past year 2.

Here's the quandary:My father will be retiring and will come into a end of contract bonus, they don't really have any other investments and he's talked many times about wanting to invest in a home with me... 

If you think you will be able to increase rents/reduce expenses it could make a lot of sense.A few bonus questions,- What's the condition of the main sewer line?