I agree with the others here that say you need to have some skin in the game, if you are going to live there yourself, get an FHA loan rather than owner financing, you can get a 3.5% down loan, personally I do not love these as they require  PMI which is an additional expense, and you also need  bring additional funds for closing at least for taxes, title, attorney and transfer fees . borrowing from anyone else for the down payment, to include a personal loan from the bank is not a good idea, those again will be higher int. rate.

If your bottom line numbers on tax returns and W2 income are not strong however, this will be an abrupt dead end.

The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

Honest... not great but we had other tax reasons to get into them.   

I pay $875 (including principal, interest, taxes, and insurance) and rent it out for $1,625.

However, before you do so you should ensure that your revenue from rental income covers ALL your property expenses in the townhome, including mortgage, taxes, insurance, maintenance/repairs, vacancy, property management, etc...

You also don't have to pay state tax on income. 

If you continue filing taxes jointly the income you realize from your separate property will still need to be explained and redacted, regardless of the type of entity holding the real estate.

Hi Everyone,I  am a professional wholesaler and property locator, I locate property on/off market, do a full due diligence on title, encumbrances, taxes ect...

Everyone has budgets and you are not in the luxury bracket where I would worry about young partiers etc.