I would try to avoid it on your very first deal but plan your exit right with multiple options.

There is a lower ratio program of .80% in cases of low rents but the rates are higher usually in the 8.50 to 9.50% Be careful of your prepayment penalties as well it can lock you into a high rate or cost you money if you plan on refinancing in 12-24 months.If you ever have any specific quetions feel free to reach out I am always happy to help and talk REI!

I plan to live there while I renovate, then pull out my investment upon refinancing.

I plan to live in in while I renovate it, then pull out my original investment (and maybe a bit more) upon refinancing.

A few helpful clarifying questions, hopefully help get your wheels turning as well, would be:What are you planning on doing with the property and what is your exit plan?

Now a landlord (and architect), I wouldn't build out the space without the second stair since it really is a safety issue/liability (especially in case of a fire) if anything were to happen.Full excerpt of building code below:According to the Chicago building code on egress requirements, the third story above grade plane within a dwelling unit [which in this case is the duplex-up unit], all the following conditions must be met:1.) the building is equipped throughout with an automatic sprinkler system2.) the floor area of the story does not exceed 1600 sq ft3.) the dwelling unit has an exit that discharges directly to the exterior at the level of exit discharge.Your third story attic space is unlikely to exceed 1600 sq ft, but you'll probably find the sprinkler system to be cost-prohibitive.

I have been very impressed by their business plan and professionalism.  

Having a unified approach can help manage stress and ensure you’re both comfortable with the financial decisions.Market Research:Thoroughly research the market and neighborhoods where you plan to buy.

Do ya'll still give them the 30 days notice,  plan to give back full deposit, etc. etc. if they are caught up on rent?  

We feel very confident in our underwriting, but given the jump that we made from SFH to an apartment building, we want to ensure we're not missing steps in our DD/inspection plan.Here's our current plan:1) Have a general inspector complete a Property Condition Assessment.2) Have specialists complete an evaluation of the roof, electrical, foundation, and heat source (2 steam boilers).3) Review financials, all leases, existing service contracts, rent roll, tax assessment, rental certificate, and 12 months of work orders.Here's what I'm not sure about:1) Are there DD items (specifically those that we would request from the seller) that are not captured within #3 above that we should be requesting?