We would like to refurbish this basement to the level of being able to air bnb this space of our house while we live upstairs.  

The rents/HOA dues compared to the listing prices (140k-220k) make it seem like an easy entry point into real estate with relatively low risk since I will live there initially and a large portion of the property is taken care of.

Commercial loans tend to be 20-25 year term loans with a 5 year balloon (meaning your rate/payment structure must be redone every 5 years).Looking at the Fannie Mae eligibility matrix, you should be able to go as low as 15% for a single family investment property and as low as 25% for a multifamily.  

Many times a low appraisal is somewhat due to the appraiser's lack of knowledge of the area, but if it takes a very intimate knowledge of your immediate market to justify your price, you're probably going to run into the same problem with the next appraisal.

High jobs growth and lower than average cost of living, low property prices and some of the lowest property tax rates in the country.

There are definitely comps in the area, just lack of consistency.I know there is always some level of risk but I'm trying to at least take on a manageable amount and be realistic about the sales price.Any advice for a first timer?

@Robert Adams  they low balled one of my Dallas properties I just would not sell to them because and I waited a few weeks and got 25k more.but its the power of radio marketing at play.

On the NW side like Montclare, fine, that's a low end price, but not on the west and sw sides. 

At What Rental Amount is it Too Much Work to Manage?

The place is a dump with very low quality tenants.