The tenant quality in these areas is terrible but a lot of people get taken in by the low prices and the lure of high returns that don't materialize. 

R5 is a little confusing to me - "intended for low-medium density single-family detached residential development at an urban density of 5 dwelling units per acre".

This allows you to benefit from appreciation, continue building equity, and still access capital for new deals without sacrificing an ultra-low fixed-rate loan.Would love to hear what direction you’re leaning—lots of ways to approach this depending on your risk tolerance and goals!

With other mobile homes when it comes time to sell and if I need the cash then I give a low price so that I can sell for cash.

Low cost, possibly yes, but also possibly very time consuming and that has a cost.  

From what I hear it is low, but still there.Keep in mind your loan will likely get sold, so you need to do more due diligence other than what a loan officer is telling you.

Thankfully we are commercial bank clients so our rates are as low as you can get in the market place for anyone who is not Lennar or DR horton or those types.

You can also use some low-down payment mortgage products to continue buying in your back yard while house hacking and renting to others. 

It is pretty low risk from my viewpoint.Then, after you've sold the first property, you could buy another home that needs to be fixed up, live in it as your primary residence, rehab it, and sell it again after living in it for 2 years as your primary residence out of the last 5 years.

what if appreciation is low for the next 2-5 years?