On interest-only loans you're paying the interest off every month but in this set up the interest accrues. 

Non-Warrantable Condos: Non-warrantable condos don't meet the stringent requirements set by GSE Agencies.

I don't want to use up the cash flow to spend and would probably want another 'nest egg' for capital expenses, in addition to what was already set aside from rents.

We loose almost all of the site line if my neighbor decides to put up a sign, plant shrubs, let their tree overgrow, etc. and this is in the riskier direction from our stand point.Our argument was that we have 400' in the direction that has a flat straight away (theoretically faster traveling traffic) and have 3xx' in a direction that the traffic is traveling up hill with a shorter stopping distance and time, most traffic will be coming off of an Interstate off ramp which in theory they would be well under the speed limit when as they approach our property.To answer your question: I am undecided if I will do more development projects.

We're just not set up for it.

I see that you have management fees set at 8% and interest rate of 4%.

You can hire a lawyer to set it up for you, but many small businesses form LLC's on their own.The important thing is keep your LLC organized, keep business things separate always, and run your business with integrity.

We have security cameras set up inside and outside, that are on the disclosures so buyers are aware of them, and that they are being recorded. 

Single-Family Home with a Basement:Pros:Familiar single-family living with potential rental income.Can be a good starter home, quieter living if the basement is well-soundproofed.Potentially lower initial investment compared to a duplex (depending on renovations).Cons:Finding tenants might take longer, especially if the basement isn't a fully formed apartment.You'll be responsible for all maintenance and repairs for both units.Less separation between your living space and the rental unit.Multifamily Duplex:Pros:Clear separation between your living space and the rental unit.Potentially higher rental income with a full, separate unit.Faster tenant search as it's a more traditional rental format.Cons:Might be slightly more expensive upfront than a single-family home with a converted basement.Potential for noise complaints if the duplex isn't well-built.Dealing with potentially two sets of tenants (though vacancy rates are typically lower with duplexes).So, which one to buy first?

You set the payment terms.