In addition, having my parents cosign the loan should eliminate the concern of no income.

However, one mistake some investors make is performing only minor repairs after purchase.I prefer to buy a distressed property and address all the biggies, like electrical, plumbing, heating, roof is needed, etc. 

Don't give that up and take a backseat with anyone else who may be mailing them because their address showed up on a list. 

I know this story is a little different than your concern but the outcome should be the same.A few years ago we leased to a new tenant and she was adamant on not having our extremely trusted handyman back in her unit.

The only concern is the alley.

We will need a formal partnership agreement, which includes a buy-out clause. that's the bit that concerns me the most.  

Would you be a little concerned about getting 100% of your money back PLUS interest?

But it still misses the point - what does the Code say as far as benefiting one's IRA is concerned? 

@John Leavelle my concern is that now that it has been refinanced at a higher value, then the mortgage and taxes would be higher.

Or would you wait and try to find a good combination unit to live in / rent out, but possibly face +1 to +2% interest rates.There seem to be a few locations where I might be able to roughly breakeven if I move out 1-2 years from now and rent it out, but they are in suburban areas that far from DC, and as a single guy in his late 30's, it concerns me that I'd end up being a hermit.How would you balance lifestyle vs. investing at this point?