If you are very confident in your estimates, then you may try to recalculate with a lower purchase price.

By the time the option to purchase rolls around, I wouldn't mind putting a mortgage on it at that point.Negotiate a lower purchase price, since it is a distressed property in need of some work and purchase the property now via HML (incl funds to rehab the property).

Keeping tenants in the lower unit is very difficult to achieve.

Investment is about knowing the true value (cost) of what you are buying--calculated based on the expected future return of that property, and then obtaining that property at a relatively lower price. 

If it turns to crap, at least you will have learned some valuable lessons.I’m in a similar situation but I’m looking at lower price ranges, and I am terrified but I’ve doing all the due diligence I possibly can.Good luck to you!

If you moved because of military orders, you still qualify, only with a lower maximum, which should not be a problem.And you're still unclear about the use of the property.

I was going to suggest at your purchase price you might also look into unsecured loans from say Marcus by Goldman Sachs , or if your credit isn't quite good enough for them you can try Lending Club, or loan depot they all do unsecured loans and some will do them with less than perfect credit.Another option is one I'm using now just a construction loan, with a regional bank here.. they are loaning me 60k for a home 30k purchase and 30 for repairs/personal debt.. to lower my debt to income ratio..

Ive only had rents ever drop on my lower priced rentals, never on my higher priced ones.

One thing that may be good about purchasing a small multi-family to live in and house hack is that you can typically get in with a lower down payment (where as if you wait until it becomes a true investment you wont typically get in for less than 25% down).

Rates are also lower now as there is so much money looking for a good home.