After 20% down and some closing costs it would still leave you with a nice healthy set of reserve capital to make some improvements or float a few rocky months if your inherited residents didn't work out.I say this as somebody who has overextended and although it's worked out for me, spare yourself the gray hairs !

I do plan on moving my office into the back of the commercial space (we own real estate and restaurant franchises), however for the rest of the commercial space (used to be a hair salon), I was thinking of maybe a co-working space.

I know it sounds like I'm splitting hairs but some banks write HELOCs in their residential department....which won't write Investment Properties.

Where did they charge the tenant for the drain clogged with hair and the false alarm on the fridge?

Now keep in mind this place was only rented for 1 yearDamages and estimated cost of repair:Walls / Cabinets covered in magic markers(over 75 different places with multi colored magic markers and crayons throughout house and in cabinets) $1035.00( Estimate from my painter)Stained vanity sink with red hair dye 50.00Broken shower curtain rod for claw foot tub 54.00Garbage removal from under appliances and in heating vents(packed with garbage) 25.00Dog damage to paint on door 25.00Stuffed food in electrical outlet 5.00Damaged heating vents x 2 30.00Ripped/slashed/painted stools 25.00Missing toilet paper holder 3.00Non cleaned over 10.00Re paint kitchen island (Market Damage) 50.00Rusted appliances from slime sitting on them for a year- 50.00Stained LVP 10.00Chipped Granite 10.00

Slow/no draining drains Drains that are clogged by hair, toys, or other non-flushable objects

Again more artwork.Hallway pic I don’t think is necessaryBathroom pic, towels look messy, a colorful shower curtain, is there room for a hair dryer, and a shelf, medicine cabinet for necessities?

For example, in my comp set, 85% of listings have hair dryers, but they make up 93% of the bookings. 

At 3.5% mortgage, which is a best case scenario, average interest across a 30Y mortgage is just a hair over $4200 annualized. 

Tenant shall not dispose of any substances or materials that may cause clogging, damage, or deterioration of the plumbing system, such as grease, oil, hair, sanitary products, paper towels, wipes, or chemicals.