For you, choosing will be based on different things such as how steady the area is where your property is, your plans for investing over a long time and the state of your money matters.

I can give you a list of zoning designations that allow multifamily in both Escambia county and in Pensacola city limits(they are different), if you are interested just shoot me a message. 

Local real estate market dynamics might be different  in different places.

I know banks hold money when approved for loans but that is different than me.

There are several different options, not sure about 7% but there are some options to off set the rate to reduce interest. 

@Kyle Schwery Buying a property and providing a service are two different things.

We are in KS and serve a different niche and a slightly different model - but same all in all same type of operation as you -- we are licensed for 41 beds but really can only hold 34/35.  

This negative cashflow, which I realize is fine for house hacking, could hurt my freedom to move long term as I would be forced to cover the difference from rent collection, however the question arises: Is it worth subsidizing $1400 in mortgage payments so that tenants can pay me $2200 once I move out?

@Jaime Pinedo let’s start with your price point, that will make all the difference in the world.

Then i would determine if there is a market difference in market areas.