One of the main reasons I've chosen go to a different state is for affordability. 

We're a lot more affordable than the other major cities in Texas.

Once you get that down you can then look at the market and see what you can afford. 

@Peter Morgan you can't afford to not tell them...It does not matter that this is owner-occupied.

The $75K loss shifts to the warehouse that has been rezoned and approved to become 14 apartments in a TOD zone.Is this located in an enterprise zone or an entertainment zone?

Yes, it's very risky indeed and we didn't really want to entertain those whom does not even request a showing.

@Ryan Zamora I own apartments that are considered affordable housing.

@Jaime Rossini,  there is a lot of info missing in your post to allow a full assessment but here is how I would look at the situation if I was to buy with a view to house hacking (live in the vacant unit for a couple of years).Regarding the purchase, this is how I would determine how much gap financing I would need.Purchase Price + Closing Costs for purchase and new mortgage + Cost to Upgrade vacant unit - How much can I afford to invest as my own initial equity?

If you’re under 29 you wouldn’t have been able to afford a house 40 years ago either.

Meanwhile, DC is a better option because of the quality of tenant but I would only be able to afford a duplex and I can manage it myself.