The other main thing to consider is that evaporation coolers really increase humidity in the unit and without ventilation it can cause problems with mold.

My main issue: How did you get the financing for your next property?

You have to consider number of factors before doing this, the property would have to be appraised and would be added to your income for the year in which you make the distribution, likely pushing your tax bracket up.If you simply wish to get into self-directed investing you may want to consider truly self-directed Solo 401k, it has number of advantages over SD IRA such as contributions limits 10X higher, no need for a custodian, checkbook control, exempt from UBIT on leveraged real estate and more.

It's located in an okay neighborhood, not the best from my standpoint, but is close to a main street and an university (12min walk). 

Many of those investors are paying cash and, to them, the numbers look fine since they're not factoring in the lost opportunity cost on their money.

So far I haven't been able to find a bank or credit union who's willing to put that on paper with one of the biggest factors being my self-employed status and only having one years worth of taxes at the moment.

Additional costs such as closing costs (investment property and home equity loan, vacancy in the beginning, repairs)My main question is: Is a home equity loan a reasonable way to generate money for your first deal? 

Honestly it's mainly just the truth not a negotiating tactic.

Investors don't explicitly pass them on to their tenants but rather implicitly factor them in because they factor that it when conducting their acquisition analysis. 

I got a degree in finance and MA in construction management.