@Katie Southard Definetly could make the transition.

After fully renovating both units, I refinanced to pay off the loan and held it as a long-term rental.

Welcome to BiggerPockets Jeff! 

My comment is not intended to be negative or positive, only sharing my experience as an agent working with investors who use this system to make their offers in my area. 

You are a renter and subletting that people rebranded to make oodles of dollars on.I would also be curious to see how profitable this is, especially as the economy continues to show more signs of major cracks

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.DM us if you’d like to discuss this logical approach in greater detail!

The 50% rule - in my opinion- is used solely as a quick back of napkin calculation to determine if it is worthwhile to do more investigating of a property. 

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

Okay so is there a need for an LLC which has some terms in the operating agreement? 

With the right resources and help, you can still make it happen.There are options that can help make buying a home possible today — even if your savings are limited or your credit isn’t perfect.