Thinking instead of just buying another primary home, I will find something more affordable to BRRRR or Home Hack into another rental using as little down as possible and then perhaps purchase another rental or two.

Or am I thinking about the problem incorrectly to begin with. 

This is the magic, and I think it is genius.

Friend is hesitant and thinking of waiting for tenant to be discharge.

As Gino stated, I think the biggest challenge will be financing with negative cashflow.

@Carrie Zhang, I think the answer is no.

I always think it's sketchy when people hide this fact.

Some things to think about:1) Estoppal Letters - Yes, definitely.

I don't think you can go wrong if you have the liquidity and the market is strong. don't forget that hotels are built in the middle of nowhere brand new and do fine. if you want me to look more closely at it send me a DM, this is ours right here that we proposed so you can see the style but it's 81 residential units, 45000 sq ft, 6000 sq ft of retail, no parking. on your assumptions, your occupancy rate looks high. pull some hospitality reports in the market and see what it is. your exit cap looks about right for what I've seen in hospitality.

I think maybe setting up an LLC to buy out my brother in law might make sense?