It’s worth researching to see if this might be a good fit for your situation.Lease Structure and Clauses: Work with an attorney to draft a lease with strong clauses for late fees, maintenance responsibilities, and other terms to protect your interests.Target Stable Tenant Profiles: While no tenant is risk-free, targeting tenant pools that historically have more stability (e.g., retirees, dual-income households, or tenants relocating for work) may reduce risk.Stay Up to Date on Landlord-Tenant Laws: Understanding your rights and obligations can help you navigate issues more effectively if they arise.That said, if the potential risks are keeping you up at night and the financial pressure of an eviction would be too much, selling may still be the best option for peace of mind.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

Sell the home to whoever your target tenant will be - modern, sleek, urban, renovated, bright/spacious; then sell the location - not whether they have a bank account or need a 7/11 - just that it is located to 'dining, entertainment, shopping, more.' 

From my experience, one key factor here is to run a thorough cash-flow analysis.. it’s not just about the mortgage payment, but also about unexpected exepnses like repairs and long-term capital improvements.If you do decide to roll that equity into a multi-family, you’ll want to be clear on your target returns.. that way you can quickly spot a deal that’s actually profitable.

That is a great price target if you map that. 

It’s a longer-term game, though, with higher upfront costs.I’d say spend some time researching your target area and connecting with local investors or meetups—they’re goldmines for market insights and networking.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

Of course "hoping" rates will come down is not a sound strategy so finding a way to assume a loan that already took advantage of low rates is a great option.If you were starting over and targeted a large SFH, would you try to maintain the property in a way that would still attract regular homebuyers (not investors) if you needed to sell?

Look for properties where you can add value with smart, targeted renovations rather than going overboard.Financing Strategy: Since you're aware of the leverage risks, keep your financing options flexible and conservative.

Unless I'm mistaken, the contract between owner/landlord and PadSplit doesn't have a defined monthly rent but a target/goal of monthly income (so it's hard to use that as lease).