I was thinking that the owner financing terms are better terms then the HML so try and use that for the larger amount.

@Andrey Gorokhovskiy, if you can be cash flow profitable with the new loan (larger amount and higher rate), then you will have freed up cash to buy more.

So I’ve finally made the choice that I will not be attending college and rather just work and save up for my first rental property.

Brian is right on; Marvin Integrity is an excellent choice - it's firber glass, which is superior to vinly in many ways.

Where do you see markets and assets that are of "like kind" where you have the choice of 40 units renting at $500/month or 20 units at $1000/month?

To me this is a very clear and easy choice - sell. 

I am surprised they are running out of hot water fast, the smaller tanks should heat the water faster than the larger 50 gallon tanks, maybe look into small tank heaters with more heating coils to heat the water even faster. take a look at this one, available from HD too https://www.rheem.com/product/marathon-30-gallon-e...that one may deliver enough hot water for your tenants.

Her unit was larger than mine, and we had equal shares of the common space, but because she came in with a bigger down payment, she paid less of the mortgage. 

If you buy a property, make it have a positive income stream you can probably sell it relatively fast and move your investable cash into a larger complex later.

The only other thing I can think of is trying to start with larger multifamily for buy and holds.Thanks,Dave