Now the scenario is a little different- I welcome any suggestions and advice. 

So the tax consequences may be different than what’s perceived.  

Duplex have different zoning that may permit additional units.

I received about three different approaches ranging from connecting to the current drain which is 12 feet deep to raising the connection 5 feet below ground.I received a quote that was about $39k and decided to go with that.

There are some great turnkey operators in many different markets, but unfortunately there are also some shady operators.

Rent by the room to me as a bizz model I dont care for personally. too much work.. now owner occ bring in roomates that different or student housing or as other stated crash pads for airlines thats different. 

The N/E (NJ,NY CT & Mass) have stringent building codes compared to other areas of the country, that might have something to do with the differences of our opinions.

No lender is calling notes due because of the difference of rates. 

Thank you so much in advance and I know this is a general question is not base in any real example so I understand that the answer can be different for each property and situation.

run the numbers with different down payments and see what that looks and feels like.hope this helps