Will you provide a porta potty, or not (think trips back and forth to the nearest convenience store or gas station, or worst-case, they use a corner in the backyard, which leaves the wrong impression on your neighbors)? 

Nothing wrong with your concept. 

Yes, you heard that correctly.So go get that 20K loan, then once the property is done, refi at 100% LTV to pay off both loans, plus pull whatever cash out you can, and now you have another down payment to house hack the next property.Sounds like you are working with the wrong lenders and talking to the wrong people. 

Please take my opinion with a grain of salt as I could be wrong on this, but just wanted to give you my thoughts.

I don't think there is anything wrong with putting 50% down on investments and having at least $500 in cash flow per unit.

When economy goes down the tenants tend to move to cheaper warehouse space at less rent per sq ft or back into their home office to try and save costs. 80% of small business especially office work on small profit margins so any major shift they feel it more.Apartments in certain classes people think they are darlings and can't do any wrong.

Just look at the less desireable house in the best neighborhood and you cant go wrong.

Work numbers backwards to get price range you want considering building is sound and nothing wrong with it.You have to decide on such a small property if the hassle is worth it.

On sfh cash flow minimum $300, multiunits $200 per door.Good Luck.If you cant refinance and get your money out, here is my thought process (correct me if I am wrong)Lets say I put in 30K of rehab and cant get the money out through refinance.

I didn't I know everything I did wrong now.