@Dave Spooner thanks for the encouragement.

I always try to have words of encouragement for everyone, but there are a few things you should know.I assume you are aware the property is in a rough part of town, so it will come witha few management isuues.

Again, I would encourage you to explore using a low-down payment conventional mortgage instead of FHA.What about pest control, lawn care, snow removal, and admin/professional fees?

Speculation on what we should see over the next 6 months is encouraged on this thread!

"Cheating" is not something I'd encourage since you may be bordering on fraud, which in a loan app is prosecutable.For reference, read up on 2009/2010 and RE loans.

@Brady Hlad If you're new to BP I always encourage people to use the search bar.

It was just the first home I’ve rented out to a section 8 recipient: unfortunately, for me this was a bust.

@Joseph Pochinskas - It is definitely okay and I HIGHLY encourage you to just go with the 2 flat and keep moving forward. 

Without going into too much detail . . . under California's encouragement for ADUs, we built a new unit in the back of one of the properties. 

I encourage you continue reading, researching, and saving for an emergency fund.