@Aaron Claybourn you can 100%, without question, get a 30 year fixed rate cash out loan on a multi-family property here...well, as long as you qualify. 

Distance doesn't matter so much to me as long as I can find a management company and/or cleaner and handy man that can be trusted with the property and quick turnovers.From everything I have read so far, AIRDNA is a helpful tool but somewhat pricy to use.

So as long as you are able to close a few deals per year it will pay for itself and will give you the added benefit of access to the MLS.

For example, if the usual hard money structure is 90% of acquisition and 100% of rehab so long as the total loan amount is less than 70% of ARV, then I would expect, due to lack of experience, that you'd be looking at 85% of acquisition (as opposed to 90%). 

In your case, I would say, yes it is ok to accept the 2nd applicant as long as you are not discriminating in any way. 

I don't mind charging lower rents (as long as the numbers work with my plans), but am I going to be stuck at today's low income rental rates while regular rental prices skyrocket?

As long as that stays the same you can use all of the disregarded entities you want.

If that house was new, it would be over $200K.I have had HVAC systems that needed to be replaced last another ten years, some as long as 40 years.

Don't get too hung up on the numbers in the near term, as long as it looks like it will lower your cost of living it will be a great move for the long term. 

She assured me that as long as I don't put it out for rent right away and just live there for 1 month and everything will be fine?