While very lucrative - if you don't have enough reserves, it can really break the bank. 

So you are suggesting like me tryin to by a single family residence or a apartment unit and live in one of the units and rent the rest out as a house hacking strategy?  

With the numbers you provided above, you will have to ensure you have healthy reserves.

I have the funds available today for the purchase of a rental property as well as a primary residence, but I also want to set myself and my wife up to reach financial freedom.  

So, maybe do 30-50% down, for better cashflow and make sure you have reserves for mortgage payments in case there's a rental market dip in the future.DM us if you have any more questions:)

However, if you clearly communicated a $15K budget, I’d stick to that and ask them to discuss the overages with the contractor to find a resolution.As a side note, always try to maintain reserves for your properties.

Treat leads and residents well, and you'll do great. 

I'd recommend having enough to close on the deal + rehab + $5k in reserve as a minimum. 

The tenants are currently in court with a title dispute so the house would have to be paid for cash only.I would like to convert it to a primary residence and turn the garden level into a separate two bedroom apartment for use as an in law suite.

Most people I know start with low money down programs so they can get away with a initial capital investment of around $25k but you also need reserves.