Whenever a significant factor in appreciation is emotional (in this case, fear), it’s time to take money off the table.

Send them the policy and take all the emotions out of the mix.

If we were simple computers with no emotions than using “leverage” to buy rentals even at the beginning makes sense.

Also, don’t get emotional over a property you don’t own yet.

Those first few years are so critical in a child's mental and emotional development. 

Being friends is huge because you have already built the trust but it can also add a ton of emotions to the picture, which will cloud judgement. 

In addition develop and document your rental criteria so that everyone knows the rules of engagement.Check with local laws and ordinances but this should include things like:Minimum credit score, no evictions on record, income required (3X monthly rent), criminal record, references, etc.Other items to determine in advance:Animal policy, smoking policy....Having these in place before you have the conversation makes it much easier and less emotional.

From here, we started to have deeper discussing about rental out our now home in which we just refinanced.

Emotional attachment will kill you.

Just looking at a deeper analysis and hate to completely recreate the wheel that I know others already have done.