My clients bought one that was four bedrooms with a den (just needs a closet) and a loft area (which could easily be converted). 

HI Elias,You can always start off by house hacking meaning you live in one UNIT or ROOM and renting out the other vacant units/rooms to offset your monthly mortgage payment.There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible.

One of the common things I see with newer investors (I was guilty of this as well) is the "shiny object" syndrome. 

I try to stay on good terms with people as word of mouth can always come back to bite/help you, and generally try to treat people with what feels right/fair.I was thinking I charge a one-month penalty for breaking the lease, and they continue to pay rent until the unit is filled.

Loan servicing companies put in the same time and manpower to service a loan that is 90K compared to one that is 900K - there's no difference.

Now I am trying to decide to sell (take the long term cap gains hit) versus a 1031 exchange (never done one) or just relist it. 

This house was very nice and clean (build later 1980) My tenant recently claimed there is mold on 1fl (it is like basement as there is no window, it is next to garage) When i see, the mold is not only one area but it seems widely spread on the ground floor (laundry room, wall, celiling etc) Since it is OOO investment, it is not easy to deal with mold issue.

-Don't let one tenant or one maintenance expense put a bad taste in your mouth. 

I am a car dealer and one of my employees' hit hard financial times and was unable to continue making payments on their home.

For your location, you have to be one of the top 10 or so non-paid listings on the search, or you will not be found.