This is a simple transaction.

@Peter SikI'll say this and leave it at that- it was one of the best advice I received from a experienced landlord- "NO tenant is better than a BAD tenant" Pick your tenants wisely, it could make or break your investment property.

If the interest you're paying your father or someone else, combined with the interest on the mortgage, combined with the principal paydown, the rent received, the expenses... if everything results in cash flow that meets your goals, then it will all come down to mustering the faith to take that next step.I would highly recommend connecting with someone locally who has house hacked... pick their brain, learn how they made it work, etc. 

So do a simple $50 title search now with a local title company and learn what you are getting into now, before investing lots of $$$ and time into the deal.

When lower it 100 or even 50 gets it rented right away.. vacant houses are not good to have.. ( do check your insurance make sure you know how long it can be vacant before you need a vacant home ryder)  But just simple math.. you lower it 100 bucks get it rented.. you can raise it as time goes on.. you leave it vacant 2 3 months you just lost 2200 to 3600 in income .. and at 100 a month it will take you 3 years to get it back.. at the higher rent and many times you still don't get higher rent so you just lost that money and its not coming back at all. that's my thought on it..

@Zachary PesickaA HELOC is always risky in the long term, just because of the risk of rates going up, but if you plan to pay it off quickly by doing a cash out refinance on the new property, than it can work well, for the simple fact that you don't have money sitting in an account, waiting to purchase the new property. 

Looks like I can pick up single family homes for $50k or duplexes for $100k.

I am looking for buy and hold type income properties, and have created a relatively simple analyzer to screen potential options.

The areas where students live have been picked thin by investors for years.

@Wagner AlcivarIf I were you, I'd pick up the phone and try calling other homeowner insurance providers.Allstate, Progressive, State farm, Amica Mutual, etcThere are plenty of them and they each have different underwriting procedures.With some, you'll qualify.