For example to invest a million, you can buy one house with 250k down payment, 2-3 years later you can double your investment as house appreciate to 1.2MM. rents will be low, and you will loose 30-40k on interests net of rents.

@David VaughnIn general I agree with what you have said however I have had this happen......house sitting for 6 mo, make an offer at asking, be told there is a new interested party, not adjust my offer because I think they are blowing smoke, loose the deal because there was another offer.I think it is common place for agents or wholesalers to re engage tire kickers when they get an offer.At the end of the day I tend to offer what I am willing to pay no more no less.

This would be one of the quickest ways for you to loose a lot of cash.  

Don’t be free and loose with your friend’s money. 

If you live in one side and want to STR the other, that won't work because each unit is its own primary residence.That said, I have clients who have successfully rented out a guest house/ADU in LA on a short-term basis and since they occupy the main residence, they are not bound by the 120 day limit to fulfill the primary residence occupancy requirements.

@Christian Orellana, Tampa is growing leaps and bounds North East and West. 

I have $5900 already invested (escrow) and I’m thinking of pulling out and loosing that money because I am worried about the upcoming lead inspection.

As long as I don't loose money I will be happy TBH. 

The lender isn't bound by your operating agreement, they are bound by the loan agreement, which will most certainly say that you each are jointly and severally liable (which means that each of you and all of you are responsible for the whole deficiency--basically whoever they can get to first, or whoever has the most assets for them to seize).This is why a wealthy person wouldn't want to sign a PG with a broke partner(s). 

Ina, there are several lenders servicing the NYC multi family space that pretty loose about income and tax returns as long as the property shows decent rental income.