I mean you have been doing it already and since you can cover you debt service buying an house that will provide you two additional sources of income if you can make it cash flow that can also help you pay off your current debt, and as you pointed out you would also have a long term asset that should reasonable go up in value as well over time.

I was looking initially to get a conventional mortgage but I am not sure if they would cover the rehab costs.

A lot of builders expect to lose money at this point in the market cycle; but because they've been building for the past 5 years, they've earned enough to cover any losses at the end of the cycle.3. 

I have to admit that I was a little jealous recently when I was analyzing a MFR deal and the numbers worked out to where I’d need to bring approximately $85,000 to closing and then ran the numbers on the same deal for a client that was going to use their VA loan and they would be bringing $0 to closing due to no down payment and the fact that the seller would cover all of the closing costs. 

Home warranties tend to cover the bare minimum required to repair  items that break.

Their flat rate monthly service covers all materials and labor, wear and tear, tenant turnovers, repairs and replacement, preventative and comprehensive maintenance and home improvements,  Unlike home warranties, they don't charge any deductibles for repairs.Maintenance requests are reported by the tenant using their mobile video app or detected by IoT sensors from connected devices, and sent to the landlord or property manager for approval.

write something up with your attorney to cover your behind.

By modeling each lease, you'll be able to paint a clear picture of the risk/return profile of the investment.

Most just look at the pictures, the rental amount, and click the button looking for more info.

Doesn't have pictures of the unfinished basement but you could finish the basement and have a small second unit: https://www.edinarealty.com/homes-for-sale/915-highview-loop-se-pine-city-mn-55063-5012713#/