I am a new member here and currently live in Tucson, AZ.

Hi Jared, I'm a former OOS investor myself who now lives in Indianapolis and works exclusively with other OOS investors looking to grow their portfolios here.

I think everyone's situation is different, and when one crafts their buy box, they need to consider their current family and finances.For me, when I started, I wanted to buy 2-4 unit distressed properties in neighborhoods I wanted to live. 

It was inspiring to hear what others have planned for their business and personal lives.

I'm assuming that this situation wouldn't pass inspection, but one could argue that all the spaces the guests have access to (i.e. bedroom, bathroom) are safe and habitable + the guests wouldn't be exposed to the kitchen.Also, do the city inspectors inspect other parts of the home the guests won't access (i.e. inspectors check the basement for water infiltration even though no guests would ever be living or even going down there). 

I would probably work with an attorney in North Carolina (or wherever you live) to do some estate planning since you do have young kids.

I live on the main unit. 

By no means cheap but solid rent + demand, fun place to live, decent inventory (relatively speaking), and is still commutable to the city. 

That was when I had enough, and decided to end the lease.He has been living month-to-month for some time now. 

You said that you are applying for an FHA loan so it sounds as though you'd be living in one unit.