My concern with this model is that there is a third layer.

One thing you might want to consider is your rental model. I

Keeps me in RE mode and considering opportunities to take my business to the next level!!

If you were in the area, I think it might be a possible business model.  I

Your hesitation tells me you are in the wishful thinking mode, not the taking action mode.

The most cumbersome piece of this model is management, especially if you're providing any centralized services such as wifi, and if you're doing shorter rental terms or shared space (ie desk rental).  

Give yourself permission to test different modes of furnished housing.

I am still in the research mode but at least I know I have a couple of people to bounce idea off of.

But I think if you don't have that end goal in sight, its going to make it very difficult to stay in that frugal mode and make all the sacrifices in time that we make - no matter how much we enjoy real estate.PAY YOURSELF!

I'll add one more example.I get a great deal on a property and secure it for 60% ARV.  2 years later there is a melt down and that property has dropped 50% in value and now I'm in the hole 10%, if I buy a 2nd property at this point (all things being equal) I only need a 25% gain to be back to where I was on an equity basis.IMO this concept makes sense if you are a buy and hold investor in acquisition mode.