It is the only good choice if you are marketing pet-friendly properties.  

@Christopher ParsonsHope you've found a VA or bookkeeper to help you out with this.All of our clients are on Quickbooks, so I can only speak to that.If you've chosen to go the QBO route:- be sure your chart of accounts is sufficient.

At the end of the day, what choice do you really have?

The Guarantor has an ownership or family interest in the Principle (Borrower) -- Is it sufficient to simply include this as a recitation?

That doesn't mean your getting lower quality people, you'll still be able to pre-qualify them and pick the best one.Most people don't walk in and negotiate a down payment in that situation, especially because they're choices are limited.

We spent a little more on this deal upfront, but we had sufficient capital and the numbers still made sense so we decided to go ahead.

Then the question becomes, if it really is a binary choice, which is worse?

It's a personal choice.

If you go with 3-4 units, you'll have to go through FHA self sufficiency which can be difficult to pass. 2 units does not require this but you can still use the income from the other unit which is a huge score.

GOOD LUCK IN YOUR CHOICE