Good morning all,I was talking to a friend today who lives in Dubai.

Unfortunately, you need to account for this as you are living in the biggest unit.

What if it is your unit causing the water leak and there is mold and it's a $100,000 remediation that requires living elsewhere for 2 weeks while it is cleared. 

You may have to do month-to-month leases.Regarding the basement, most cities really don't care if the homeowner chooses to live in the basement.

First get a job.Save enough for 3.5% down for FHA mortgage and buy a 2-4 family property.You can live in one unit and rent out the rest.

If you have never done this as a full time business I will throw caution to the wind it is not as easy or as profitable as online forums make it out to be, and if you need money for living this probably is not going to sustain your lifestyle for the first several years. 

One is strictly investment, where the neighborhood/location is not important just the potential for upside and low cost living.

I am planning on living in the house next year and renting out the other rooms (3 bed 2 bath).

You can't even change a lightbulb.You or your family can't use or live in the property.

Everyone makes some wrong moves at various times of their lives so I wouldn't worry about that.