You are (older/retired) and could benefit from house hacking and buying a duplex, or renting a room.

We are starting to get a clearer picture of the benefits and burdens of having an investment property, but we are still very new to this. 

Managing a rental yourself can be time-consuming, especially if you're handling maintenance, tenant relations, and lease enforcement. 

It will familiarize you with the basic terminology and benefits.

I like targeting outside of where I would live for SF and small MF (1-4 units) because of the lower entry price, usually higher cash flow since your rental income is higher relative to your debt service, and your appreciation potential is high if you can read the writing on the wall.

I am finding the market challenging especially as it relates to cash flow.  

Dan, I appreciate the thoughtful response, many things to consider and certainly a lot of great information.For the expenses, yes at 33% I would agree it is a little thin.You bring up some great points as it relates to opportunity cost and the payback period with a large down payment.

You have $70k in equity tied up, earning a low return relative to its potential.

Not the most scalable method, but I like the benefits it affords me while I am still a smaller operation.Completing 500 builds in just over 10 years is impressive for someone who just sorta fell into it.

Costs will seem high relative to the loan amount on these smaller loans, $5-6k in lender fees isn't uncommon.