I don't know your living situation but if your paying x,xxx for rent or a mortgage and instead by living in one side and renting out the other you will be paying y,yyy instead and y is less then x that's great, especially if you can rent out your primary residence and make income there too. 

Hopefully, not an expensive tenant or Fair Housing lawsuit.100% of what @Travis Biziorek states is true, but he left out a key fact - he lived in the Detroit area when he started investing here, so was able to self-manage and meet everyone he had to hire face-to-face.

Quote from @Brendan Doherty': I’ve read in books of people getting past having to live in the property they own so they can rent all units year one of ownership(living on the property with an rv).

Housing is one of those things that people like to scream about, but the reality is that there are more than enough places for everyone to live.

It always seems the people that don't live in CA or have ever lived in CA are always the one leading the bandwagon of "why would anyone live in CA?".

@Jarrod OchsenbeinIt's great to hear that you are succeeding with the co-living model.

All the rest live in other states or countries.

So - somewhere 2 hours away, or somewhere you like to vacation in, or where all your family lives, or where you plan to move someday.Too many people are trying to do exactly what you're doing - pick a market based on a formula - and they end up buying a random 'cheap' property thousands of miles away, turn it over to people they've never met or even spoken to, and then... lose money.  

We live, office, and Property Manage in Queen Creek and love it!

Talk to a CPA to see how each scenario plays out.A 401K continues to grow in value, but what do you live on?