Some sleep better at night with zero debt, while others love to use leverage and are willing to take on more risk.Community banks right now will go with 80% LTV.

I would not lose sleep over this.

See if @Jay Hurst has a better financing option for you in Texas and get out of this mess while you still can without losing a ton of money and sleep would be my recommendation! 

The first time I was laid off it was traumatic because I my industry and the economy were in the toilet but more importantly, I didn't have enough cash flowing RE, second time.... not nearly as bad, and the third time it was my idea and I haven't lost a minute of sleep about my decision. 

We intend to use this space as an office and or small sleeping quarters.

Having cash reserves gave me the confidence to move quickly on a great deal without losing sleep over unexpected expenses.

So even if the cash flow is only 3% or 4% cash on cash, that’s enough to provide a protective layer to cover unexpected items.To me, the cash flow is NOT to put spendable cash in my pocket NOW but rather keep the property self supporting while it increases in value over the long term.In addition, every property a purchase has a cash reserve fund - call it my rainy day fund or my Sominex account (ie I can sleep at night knowing if the furnace goes out I have $8,000 in my reserve fund to replace it.)One final note, I have found once one reaches a certain net worth, cash flow no longer is a concern, there is always as much cash flow as anyone wants.Final note, who will have more cash flow someone with $1M investible cash or $3M investible cash?

Two weeks later, 5 bottles of Pepto 8 nights of no sleep.

You probably had a little tickle in your moral compass which gave you pause, which is why you reached out.My wife is an accountant, when we look for every possible tax break it doesn't feel like theft, we feel accomplished to find a place for more savings and lose zero sleep over it.

Although you didn't post pics or anything so maybe it has a huge view or a 3rd sleeping area or a ton of sq ft.