If you have to restore with only certain materials or methods, that may increase the amount of coverage you will need.2.

So I like your plan as it is the primary method that I use.  

I had originally looked into multi-family units as a possible stepping stone into commercial real estate down the road but was dissuaded by some of the online reports I found regarding crime statistics in the neighborhoods I was canvassing.

On the other hand, if I were to go through all the legal steps and fill out the required paperwork to make this first home a "rental property" and myself the landlord renting to my two friends, wouldn't this would give me more of an advantage when going to obtain a loan for the next rental property as my monthly expenses would show as less and monthly income as more?

@Amy Hu 1st step secure property.

I stepped away from my real estate goals years ago when my son was killed in an auto accident, and suffice to say that recently I made the decision to get back in the game doing what I love. 

Would like to rehab using the brrrr method on small family units to grow some equity and capital, then air bnb smaller units in the inner city area.

I am ready to take the first step in what I hope will be to build a property management company.

I need to take the next step as a RE Investor and wanted to grow my network both locally and across the country.

So I like the "make more" method.#4  Start growing your "network capital".