If you live in one unit and rent out the other, you can cover some or all of your mortgage and expenses with rental income.

@Skyler Lehman assuming you're asking about 1-4 Family (SFR) or small MF.Fees average out to 10-12%, once you take into account all the extra/hidden fees.Don't be fooled by 5-6% quotes!

Quick info on me that could possibly help: Licensed realtor, good credit, first rehab I’ve owned but not the first flip project completed by the GC or by myself as the realtor, strong W2 income in addition to real estate.

But, besides competition, why would I, or any other appraiser want to share my income when business is generally scarce at the moment. 

I don't think I qualify for any conventional or FHA loans as I don't have long enough income history.

But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't?

An overly-saturated market should certainly be taken into account.

But yeah wow, then people don't really have to get active income from flipping business or something like that if I do cash out refi well. 70k is when coming from my pocket. 

Anyone can do the same and the biggest misconception I see is “passive income”.

And they know it too when they are paying below market rents, especially in the low income market.I.E.