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Many investors model IRR to properly benchmark investment opportunities and to calculate their true profit.You can buy the house for cash and then put a loan on it afterwards.

.$1063.00. 13%Less payments (PITI) of new property + debts ( if owner occupied can’t be over 45-49% depending on lender)$3854 + $1063 = $4917. 58% (over the ratio)I can add to my gross income 100% of projected rents for owner occupied unit and the 3 units rented at appraisers estimates of $1500 x 3 = $4500/month Then calculate my debts and new PITI against that income.$8500 + $4500 = $13,000New ratios = 8% and 38%For Investor owned...I can tuse 75% of the appraisers rental value for all four units - $1500 x 4 = $6000 in gross rents x 75% =$4500 Less PITI PITI = $3952.00Cash flow (if any left over that number can go to my gross income for qualifying.)$4500 - $3952= $548.00 And the PITI does not count any further for the 45% ratio since it is deducted from $4500 already. 

The borrower has to settle the debt...it's not going away...and there are also late taxes I would bet...which are in first position in front of the mortgage.

@Nate Wentworth if you start with multi family this early in your life, especially house hacking, then you will be set for life.https://www.biggerpockets.com/real-estate-investme...There are calculators here on BP that you should familiarize yourself with, and Brandon has done many tutorials and webinars on how to analyze deals...https://www.biggerpockets.com/renewsblog/2013/01/1...so I suggest finding potential deals in your area and start running the numbers to see if they make sense.

It might be an idea to rent a room in your house in the meantime, if you're up for it.I advise you to make a calculation for the next 2 years: all gains and expenses per each project, how much total gain you will have in 2 years if you do a flip vs a rental after paying all the expenses and mortgage and selling the home.

If you want stability, less hassle / work and break it down to more of a science (calculating cap rates, ROI, etc...) then go Philly rental.

In my opinion  the agressive apartment building will eventually catch up to the demand and single family homes would be the safer bet. 

I think using a "return on equity" calculation every year is a good way to measure whether or not to continue holding a property. 

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