If you use the extra $100k of cash you receive to just...live on, buy a jetski, take a trip to Disney, (any personal use) the interest for that portion of the loan will not be deductible. 

If you're doing FHA, I'm sure you know you have to live in one of the units.

If not, do you own the primary home you're living in now? 

Quote from @Marc Zak: In the market where I live (San Diego), appreciation has been strong and many predict it will continue to appreciate in the long term.However, with current interest rates (6% at best) and property tax (2%), the annual cost burden is 8%.Am I correct in saying that appreciation has to be above 8% annually (plus whatever my maintenance and vacancy costs are) for me to make any money in this scenario if the property is cash flow neutral?

I lived in it for a year and loved the location.

Loving living and hosting in Tuolumne County.  

Very generally speaking the areas of Hartford and New Haven where you can hope to attract qualified tenants (assuming that is your goal) are very expensive because most of the people with something to lose that live in these cities generally live in 2 or 3 areas.

Also Mid-Term Rentals to traveling professionals, people displaced for insurance reasons, or doing a renovation to their home and needing a place to live for  3 months or more are also possibilities.

They knew a dog lived there when they rented it and they rented anyway, knowing they had allergies and chronic asthma they rented a home with carpet. 

My plan is to sell my primary home in New York and purchase a house to live in South Carolina.