It's mostly just about the numbers.The most important factor is the debt-to-income ratio which determines how much you can afford. 

Of course these would need to make you more than they cost after expenses and debt service.

@Mark J Gugliuzza it sounds like a good way to buy a property that will not cash flow after expenses and debt service.

I’ve heard of leverage and good debt and bad debt but I would like to hear on what you all have done and what your experience was buying your first rental property.

Logic/assumption being that a cheap tankless water heater will be of worse quality than equivalent priced electric water heater based... and that a 5 yr warranty would eliminate many of the headaches and has been proven to work so far (assuming people haven't complained about hot water all along, rather this is new thing as the heaters are starting to fail).If it was different asset class or he was flipping it...

Now that I've cleared up the violations, I'm wondering if I should cash in and pay off the renovation debt and buy another place.My architect is recommending me to convert it back to a single family home which will increase the property value significantly (due to comps... there are no rental comps in the area, just sfh comps). 

Im on my 13th flip and have 1 rental (12% interest only) I am in the process of paying down debt to get a better refinancing rate and was kicking around the idea of selling my primary after getting approved for a bigger house for my wife and 2 boys, and then selling my primary to pay off my rental with the equity, firing property managment and collecting $1200/mo rent.

@Edgar Joshua Find a third party intermediary to service the debt...if that's not an option look to ACH.

I live in MD, partner to be is an NC resident.Questions:My accountant suggested a multi-member LLC, but wouldn't holding the title as 2 single-member LLCs eliminate Maryland tax filing fees as well as the NC partner being hit with both MD and NC tax on out of state LLC partner's earnings?

As mentioned selling a primary is even better tax wise due to section 121 as it isn't allowing you to Defer tax as with a 1031...it's letting you totally eliminate the tax!