you may want to factor your appreciation rate at 0% past the default point ;-)  Financing long-term assets with short-term money is the classical road to bankruptcy as has been pointed out in several other posts already4.  

If it’s something different, then it’s your classic bait and switch as was previously mentioned.

There has been a buying frenzy here as investors have been snapping up everything and rehabbing / repurposing buildings. 

Hello BP,I am an investor and Realtor out of KW Classic Properties office and it is great to be apart of this site.

Classic bait and switch. http://www.bizjournals.com/losangeles/news/2016/10...http://www.ocregister.com/articles/classes-733381-...Save your money. 

-Can you re-purpose one of the units into a vacation rental, air bnb, office space...etc?

Miami/Homestead is very much like the classic Washington D.C. scenario, where 30 mins south of Downtown Miami, you get to the suburbs and prices for homes similar to Stafford, Woodbridge, Manassas, etc in Virginia. 

The issue is my debt to income ratio always getting loans thats why I try to pay cash, Im not a loan officer but my cash flow is significant at work but my personal income is around $14k/mo and I currently have 2 mortgages out 1 for $200,000 left on a $1.4M home(personal) and $232k on the property mentioned above & $70k or so on a classic investment car that I bought, so when they look at me Im pretty tapped out on loans, now I dont know if thats the case if I buy something cheap $150k-200k or not but I know my $500k condo I mentioned, I had to put 50% to make the deal work.I have alot of paid off properties on my balance sheet but working with chase has been tough to get loans, but I would say my net worth is almost $3M not counting my business and yet I struggle to get loans with chase but yes I would love to get loans to by some properties but my issue is as mentioned above so Im paying a few thousand extra monthly on my home & the rental property trying to knock out the mortgages so I can then borrow.

We took a bunch of 3.00 used pallets and pulled the boards off to re-purpose for our wall.

I'm not sure I'm reading the question correctly because I can't see any cons.As long as you can personally afford it since you'll be living in it, which the lender will ensure of course (that you can afford it), I think it's a great way to start out in real estate.As long as it's habitable (to your standards ;), you'll be able to really "get your hands dirty" with some repairs (even if hiring some out) but without the stress of having a tenant bothering you asking when the repairs are going to be done.Again, maybe I'm not understanding, but this seems like a great & classic "sweat equity" way to get started.