Here are some other things to take into consideration before you make the leap as a rental.

You've made a lot of great points and I will definitely take them into consideration.  

If you are looking for maximum leverage, you can wait unit all units are rehabbed and rents raised but that may be a longer horizon if you have good in-place tenants at the $1200 rate and you don't intend to force another rent increase.Couple of other considerations (1) outlook on rates now versus later (2) current reinvestment opportunities (3) idle cash if refi and no immediate reinvestment (4) loan prepayment penalties, if applicable and not waived.I'm curious on what you are going to do.Very well done.

Does it outweigh other considerations or not.2.

I have three options:I can sell to my tenant - most of my tenants are interested in home ownership, eventually.I can sell to an investor - I only rent M2M so I can offer a home that produces income or can be vacant in 30 days notice.I can sell to the open market - most of what I own is SFH, so I have a broad market to advertise my house...I can also sell my home below market (because my purchase price is right) to get out quickly if I need to and still make a considerable profit.Multiple properties may incur higher PROBABILITY of a bad thing happening, but it will yield you a higher PERCENTAGE of return on your investment IF you stick to your investment rules.My largest "contrary to the popular belief" is that I buy not to generate large amounts of cash flow (although each property does @Justin Fox brings up a good point that it isn't just what you have left after you pay PITI), but to keep my equity safe and building as I own and maintain the property. 

This is also taking into consideration, a 25% vacancy factor.FHA also limits you to a total of 7 units including subject property and all other rental property. 

I'm for owning in general and there are tons of other considerations that are hard to weigh for others.

You could have one mortgage and 2 notes (or more).You now have a record mortgage and notesThis is a negotiable piece of paperUse your note or notes as a down payment for other real estateSell you note for cash.Offer to a seller: "in consideration for the down payment, seller agrees to accept a $75,000 mortgage note with payments of $X and having a balloon payment in 5 years secured by the property at 123 Main Street having an appraisal of $125,000.Make sure you build in a First Right of Refusal in the even seller decides to sell the note, he will have to offer it to you at the discount amount.Build in an early payment discountThis is a create way to leverage real estate, especially properties you can't sell immediate.Charlesif you still don't understand, give me a call. 

There are a list of options for new buildings, is it worth the time to learn more about the benefits of steel.With all of the different types of construction you can choose from, would metal buildings be the next considerable investment?

@Ryan Sanderssandwich lease options  are two basic arrangements Arrangement one is between you and the seller, and you can enter into a lease option with the seller with rights to sublease and sub option,  because the arrangement is between you and Investor and you're not living in it as a tenant or owner occupant, you can have rent credits applied towards payments to receive an option price that is attractive.Arrangement two is between you and the tenant buyer, where you can enter into a lease and give them a ROFR, the ROFR can be separate from the lease, there can be a consideration fee for the ROFRI like reverse assignments where I assign my interest in my agreement with the tenant buyer to the seller, generally in the form of a note or deed of trust,  so there's only one closing between the owner and the tenant buyer Example house is worth 250 and I get an option price of 220 and sell it for 250, the difference being $30,000