I'm in a similar position to you.

tenant is not in position to buy now but will be in 2 years or so.

You have made a positive start which places you ahead of about 95% of your peers so keep u the good work.

Much lower median price home, more positive business outlook, more conservative etc, etc, etc.

Even a HML might be tough, because they don't like being in subordinate position ...HML might be possible if you can refi the entire thing and still get fix-up money from the HML, but that isn't guaranteed to happen either.

If you could get $700 in rent and you use a PM then you're cash flow positive.

Make sure you add the HOA fee, taxes, insurance for the condo to generate positive cash flow.

Purchase a property and use it for a rental (positive cash flow).

The way I am leaning towards is to look at it in a combination: look at number 1 and determine that it is both cash flow and net income positive, and therefore since the equity would otherwise be doing nothing that this is the good use of the equity (a positive vs. a zero), then to assess if the second property is a good decision based on number 2, and make the decision the same way I would make any purchase decision.

Does it matter if you split profits 50/50 - I assume no because the equity position is what matters right?