The tenants in the 3 bedroom rental aren't in a protected class but I do not want to get in any kind of legal bind. 

I am assuming I should only apply for one loan approval since pulling my credit score/history will lower my credit number. 

After a couple of years of treading the path to frugality to build this financial runway, I've networked with the greatest people who made this all happen, of course, it took the strength, determination, time, etc to place myself where I am today but, without the mentorship of my two great mentors whom I wish used BiggerPockets so I can mention, I don't believe I would have made it thus far relying on some whimsical dream that this will all pan out accordingly, thank you for everything Greg and Lashawn.In addition, I would like to thank Bigger Pockets for connecting me with the greatest realtor @Stephen Schmitt Who took my dreams and aspirations to the core when we first connected and spoke about my future goals to replace my W2 job for financial freedom. within three months of me deciding to pull the trigger and get pre-approved, we found this killer cash-cow that apprised over purchase price!!! 

I've also heard it can be a good thing to have some debt against a property because if any issues arise legally, the bank will be the first line of defense. 

I would not make this a legal matter, but you will have to decide if you want to commit to living with this landlord.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

**NAHB Contracts**: The National Association of Home Builders (NAHB) offers a variety of detailed and standardized legal templates specifically designed for the residential construction industry2.

Getting pre-approved, networking with local investors and agents, and understanding LA’s market challenges will set you up for success.Good luck!

But for large multi-family, that amount hardly covers your legal fees for one transaction, let alone down payment, due diligence costs, lender fees, other closing costs, etc.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.