So there is increased risk. 

I was a commercial lender for over 20 years and hotels are high risk / special use for most banks.

At the risk of sounding too dramatic (but I know us on BP can get extreme to reach our goals), I am going to NOT get another residence.

Diversifying your portfolio could reduce risk and improve overall returns.Higher Cash Flow Potential: If you redeploy the equity into markets with higher cash-on-cash returns, you could significantly increase your monthly cash flow.

. :)We definitely want to invest in true vacation rentals as well but this will be a good learning process with not as much risk to start.  

But there's definitely risks that come with that as well.

I would probably take the risk at $500, but $1k feels more of a ripoff like most guru programs. don't waste your time if they don't meet your criteria there is ZERO chance they will meet this guys.. remember they make their money with you folks dreaming of making money and paying for the dream.. 

You can mitigate risk along the way.

I am going to take the risk but will absolutely let the community know about my experience.

Your plan to house hack a multifamily property in Indianapolis is a great strategy to start building equity and learning the ropes with manageable risk.