This doesn't fit the situation you described exactly, so it's still a bit of a gray area, but here's what I found:  Mixed-Use Properties- Properties that have a business use in addition to their residential use, such as a property with space set aside for a day care facility, a beauty or barber shop, or a doctor’s office are eligible per the following:  Property must be a one-unit dwelling that the borrower occupies as a principal residence  The borrower must be both the owner and the operator of the business  The property must be primarily residential in nature  The dwelling may not be modified in a manner that has an adverse impact on its marketability as a residential property. 

Hi Showshawna,Blindly using $/sf values without completely understanding what's included in a light, medium or heavy scenarios is a very dangerous way of estimating rehab costs.If you are going to use $/sf you need to understand that the Scope of Work, level of finish, & market will impact your prices.I would recommend performing a pricing exercise and perform 3 different detailed estimates of a typical sized rehab project that you will pursue, with different grades of rehab (light, medium, heavy).Pricing Exercise StepsFind a Typical prospective rehab property that you will pursue at the auctionsCreate a detailed Scope of Work for each Scenario (light, medium, heavy)Create a detailed list of whats included in each scenario:Light - Paint & Carpet?

The plan is to self manage until it becomes a negative impact.

The following are some property selection guidelines.Older properties require more maintenance than newer properties.Composition roofs require more maintenance than tile roofs.Properties in climates with hard freezes require more maintenance than properties in mild climates.Properties in locations with a lot of moisture require more maintenance than properties in dryer climates.Wood siding requires more maintenance than aluminum or stucco siding.Properties with lush vegetation require more maintenance than properties with little or no vegetation.Locations with high levels of termite activity will require more maintenance than areas with little or no termite activity.The tenant pool has a significant impact on your ongoing maintenance cost.

General shout-out to everyone who posts here and attends meetups for tremendous impact it's had on so many investors, including myself. 

Once you finish medical school and are a practicing physician, there are special doctors loans that either ignore the student loans or calculate their impact more liberally. 

I read it had v high crime rate...not sure how that would impact me as an investor yet though (I'm wavering between self-managing and using a PM). thank you

You are entering a grey area regarding accommodating for medical reasons that may  negatively impact you down the road.

These fees, in addition to an annual servicing fee of 36 basis points, can have a material impact on a borrower’s effective interest rate on the loan, and in some instances, the company’s overall cost of capital.

Making unfounded assumptions can have out sized impacts.2.