Cat urine is extremely difficult to get out of carpeting and pads and while there are some good products out there to remove the stains and odors it is still a toss up as to whether the smell goes away forever. 

@Tony Hershiser this is definitely a difficult situation and I know that it can really be a mental strain.

Very difficult to make any cash flow for at least 5 years.

Finding a lender willing to do a cash out refi on an investment property can be difficult. 

@Bruce Runn how difficult are these infill lots to find for new construction in the Twin Cities?

Get a difficult tenant and you will wish you hired a manager. 

My payment won't kick in until July so I still have that 1-month buffer to get this done.My risks here are in 2 main areas: rental income and market appreciation.Obviously, with house hacking, it is generally a bit more difficult to accurately estimate the monthly rent per room.

Personally, I think interest rates will be higher than today so it may be difficult to refinance your way out of the private money loan, unless that one tenant is currently paying significantly below market rents and you are certain you will be able to get much higher rents when that tenant eventually moves out and you upgrade to market standard.Doing a JV on a TIC basis would make the financing easier since your TIC partners would share in the ownership and mortgage expenses.

With high demand and prices, it's going to be very difficult to find a good deal on the MLS.

Do you find maintaining the property with renters difficult?