Personally I would pick option 1 because you cash flow is already high and so a slightly lower cash flow with higher LTV has relatively minimal impact on cash flow.

How did you handle or minimize these expenses?

With minimal risk and the opportunity for a quick turnaround, this deal aligned perfectly with our investment strategy.

The lack of clear communication from the lender left us in the dark, wondering if this deal would ever see the light of day.The night before closing, we were still in limbo, with no confirmation that the deal would go through.

While some lenders focus on minimal documentation and fast turnaround, they often lack the flexibility and understanding needed when challenges arise.

Cashflow is minimal at first, usually enough to pay for the occasional repair and you are paying close to retail price. 

. $140/month vacancy reserve (5%)Rental Income: $2800/monthCash Flow: -$134/moTownhouse:Note: Looking at low price units on the market for < 7 days to possibly get more value / minimize mortgage paymentsPurchase Price: $450kMortgage Payment: $2150/monthProperty Taxes: $1900/yr or $159/moUtilities: $300/monthProperty Insurance: $125/monthMaintenance (5% rent) + Capex + Vacancy (5% rent) Reserve: $500/moRental Income: $3000/monthCash Flow: -$232.64Detached Home - Single UnitPurchase Price: $600kMortgage Payment: $3193Even if I can get $3300-3400/month for a 3-4BR home purchased at $600k, maintenance and reserves will cause it to be negative cash flowDetached Home - Two UnitsPurchase Price: $700kMortgage Payment: $3831Property Taxes: $3500/yr or $292/moUtilities: $300Property Insurance: $125/moMaintenance (5% rent) + Capex + Vacancy (5% rent) Reserve: $860/moCash Flow: -$608.57Are any of my numbers way off?

House hacking is another excellent strategy, especially for getting your feet wet in the investing world while minimizing living expenses.Your goal to invest in affordable housing is commendable and can be a rewarding niche.

Property tax reassessments have also resulted in higher taxes for many homeowners, further complicating the financial equation.While efforts are being made to bring more insurance companies into Louisiana, the relief has been minimal.

Property was successful for the next 12 years with minimal issues.