Basically if there is no "living room" and there are no comparable properties with similar square footage and bed/bath count in your area the property becomes difficult to comp or sell and lenders will not be able to use it as collateral for a loan Excellent point.

You're inspiring many others to do the same and follow the plan of 'slow and steady wins the race'.   

A small compromise is okay, but best location should win it.

That would be excellent! 

My goal is to maintain good relation with tenants and have excellent communication.

Yet, through the magic of social media marketing, they imply it's so easy to do every time.It's like paying someone for advice on "winning lottery numbers" just because they once won a scratch-off prize.DM us if you'd like to discuss the reality of using S8:)

However, it seems my local area (San Jose / Bay Area) might not be the best as I know most of the win is in the buy.

Find one that does not have a high-priced long-term monthly contract, flexible pricing, and excellent customer service.

Let's win together. 

If so, then it makes sense to get loans from the start.Cash gives you the benefit to win against others, as @JD Martin said, and then finance it later.