Look for an experienced operator to partner with.

Finally, of the extra $200k, how much are you putting into operating reserves? 

"I actually think renting a place will get me started"If you are talking about being a tenant yourself and operating a airbnb in your rental apartment don't hold your breath.

Therefore, your financial freedom hinges on new companies continuously moving into the city, creating replacement jobs.Companies have many options when selecting a location to set up operations.

I'm paying about 2k/month in JUST INTEREST. it brings in about $1300 and I live there with 2 roommates and operate my business out of it.

It just might be a different strategy involved.Cash flows through refinance or sale or operating cash flow is the same in my book.  

(His profit is in the entry fee) He owes 3 months missed payments and I offered to catch up the arrears, bring the loan current, and take ownership.I myself own and operate 13 units since 2017, and I’d say I’m a good operator.Anyways, the issue is that now the bank/owner has been notified of non payment, and while the seller is telling me everything’s fine between him and the person on the note and all, I know that the bank has eyes on this account now. 

We own and operate a mid size REI and property management company in Marquette Co. (~300 units or so). 

Lenders see all, including how little margin some flippers are operating on.  

I'm also concerned about the liability that I might be exposed to here by allowing what appears to be a business to operate out of my rental.