Is there room for negotiation or compromise?

Even a room rental is a legal rental.

I could sleep in a room or on the couch to free up another room to rent.

Scott,There are several items that you need to think about; common area cleaning, common area utilities (electrical at least), laundry room upkeep, fire alarm servicing and possibly monitoring, etc.

Househacking is how a lot of people get started in Real Estate Investing.Basically you rent out rooms of your single family or you live in one unit of a duplex or triplex and rent out the others. $40k sounds like enough for a downpayment on a new house.

SFR, 3/2 + "extra room that can be used as a bedroom" 1300 sqfPurchase: 56KRehab: 4kARV: 70kRent: $800 (according to PM, but I think it might be closer to $750)Vacancy - 8%Repair - 8%Capex - 8%PM - 10%P&I - $270Insurance - $50Tax - $90Cashflow - $120 ($100 if using $750/mo)Deal or No Deal?

to provide an update (I had it for awhile just forgot to provide it), the title search came back way too out of hand where there wasn't any room to work around it... verified it with my title search person and closing agent, it was not doable. 

Last year our daughter started at the University of Cincinnati, and was required to live on campus the first year, to the tune of around $12,000 for room & board. 

In Many ares of the country there is room to expand. 

If I fix house #2, I would gain about 20 grand in sales price, but headaches because I live here now.