While I could have gone lower I am lowering my risk tolerance because I expect a recession in late 2019 to 2020.

It’s also great that you already have equity in your primary residence and cash available—those are valuable resources for getting started.If you’re considering a multifamily property, house hacking could be a great way to dip your toes into investing while minimizing risks.

Bigger deals can be a good angle to attack AND that being said there is a greater deal of risk involved. 

This area was always a very high risk and should they rebuild?

Create a short presentation that outlines your process and risk mitigation strategies.

If possible, in the future I would try to obtain a copy of a standard Condo questionnaire from the HOA prior to the mortgage application process and ask your lender to review it in advance in order to mitigate some of the time and costs risks associated.

Simply put the risk of a non-renewal costs more.

Although there is potential profit in this kind of profit, there is also more risk associated as the repair costs can pile up quickly and create a scenario where you have invested more into the property than the repaired property would actually be worth. 

Obviously, the at least 42 input variables can be adjusted to your own risk tolerance, but this is far easier/quicker than to re-create the entire input.You can find the link on my profile page.

I think it likely an appraiser will value your duplex with 2 ADUs via comps with quads, but recognize there is some risk assuming this.