I have been successfully renting out 3 rooms in my single family home while living in the unfinished basement for a little over two years now.

I have been successfully renting out 3 rooms in my single family home while living in the unfinished basement for a little over two years now.

You are asking for a lotTo get a deal, with location and needs.You need a good place to live for your Mom so she is close to supermarket restaurant may be park.Find the best place for your Mom and yes work on the financing. 

Which area works best for multi-family investing will depend on a few factors:- will you be living in the property as well?

The government (so far) will not force you to live with people you don't get along with.Likewise, you don't have to subject yourself to the health risks.

I live in Illinois, if that factors into any decision on what my initial strategy should be. 

Recommend any tips (for STRs), any guidance etc.We live in the Phoenix metro area..Thanks everyone.

We would plan to “live and flip” (live in it for 2 years to avoid capital gains) while we rent our current home. 

I am planning on House Hacking the 3 unit (live in 1 rent out the other 2)  for a year or 2 and then move out a rent my unit out.$200k is a lot of money if you are in a flat market.   

I recommend using a boilerplate lease agreement, then adding attaching an addendum with a list of rules particular to your shared living space.