I always say hosts make the worst guests.

Worst case, depending on how bad you want the house, you could get an interest only bridge loan from a private lender then refinance as soon as you get your first house sold.

If the worst thing that can happen is a denied loan, it could be worth trying to save 250 dollars a month.Also, would the proper thing be to advise that my future clients refinance their home before moving out if they plan on using their first home as a rental, or do lenders actually go after borrowers who refinance and then immediately move out? 

If they are not, I'd recommend shopping around and finding someone that does.If this triplex is anywhere near Garden Grove, CA, then I imagine you will have no difficulty getting a nice amount of rental income from the other two units.Let's assume worst case scenario...You can't qualify because your DTI is too high or whatever reason your lender is giving you difficulty.  

If you feel the numbers you've reached are more of a best case scenario as opposed to a worst case, it may be better to simply walk away.

The worst case is that you get to know your target market so well that once your property sells you know instantly when you see a good deal.2.

Austin market appreciating like crazy and worst case we'd stay a little longer even though it may be smaller than we'd like.

If you plan to buy and hold it may not be the worst thing, but will probably effect you when trying to finance if the bank catches it.

I just read an interesting post in this forum on the worst tenant/ trashed then rehabbed again experiences.After months of reading Bigger Pockets books, taking in podcasts, forums, etc., I am starting to notice that buying 100k properties is usually in difficult neighborhoods, tenant problems, etc.Question: there is an upside right?

Attorneys are great about thinking of the worst things that could happen and then planning ahead to mitigate the downside.