You want to invest just to have a place to live and potentially offsetting your mortgage payment by renting out the vacated rooms or having x amount of cashflow in the future?

But I also think that if I can rent it to cover the payment and expenses, why not let someone else purchase the house for me and keep it indefinitely...Then there is the fact you mentioned about the 121 exclusion, which I would qualify for now...a bit overwhelming making these decisions so thank you for your insight.

Or should I go hard money with a smaller down payment and refi to conventional after seasoning period?

Additionally, consider using a secure payment method for the deposit to prevent issues.

Then you can have a conventional roommate situation and save money towards the next down payment.

We also have good enough cash put aside for a %20 down payment.

If there is a $100,000 loss, the payment under the policy would be $50,000 (less the deductible).The named insured on the policies need to match the ownership. 

BTW, you must get a phila tax ID first, then a commercial activity license, and finally a rental license.Hope this helpshttps://www.phila.gov/services/permits-violations-licenses/g...https://www.phila.gov/services/permits-violations-licenses/g...https://www.phila.gov/services/payments-assistance-taxes/tax... 

It might be better to put a large down payment so the property will cash flow enough. 

Hopefully, with a big enough down payment the mortgate will be low enough for tenants to cover.