After stumbling upon the BP podcasts, we've decided to look for duplexes to implement a house hacking strategy by renting the second unit to a tenant.

The best contractors don't often go to Home Depot and Lowes as much as to the supply houses--they know the materials are better quality and usually less expensive than some of the 'second quality' stuff the box stores sell.Good luck.

Secondly, the bathroom window is EXTREMELY hard to get locked.

@Chris Schroeder, I would second what @Jeremy Hart said and get it in writing (I bet they won't do it) if you are really concerned about the DoS clause because realistically these loans get sold all the time.

I do like your first strategy, but I think the second strategy would be more feasible, and heres why:Option 1- You start with $400K cash.  

A CPA specializing in real estate can help you FIRST AND FOREMOST  structure the purchase and SECOND, reflect it on your return.For instance:Why are you depreciating everything for 27.5 years?

@Jeff S. for a second it appeared to me that you had 1,014,979 posts.... :-) 

Second question - how to buy low in a seller's market?

Kerr - thank you for helping me - having a second set of "Experienced" eyes looking at an opportunity helps to reduce the "Fear Factor"

The second is to not lose money, though...so, don't do that :)