If "I" were in your situation I would forgo using all of my cash for a duplex in favor of a 0% down deal!

Finding a larger place and renting for a while longer sounds perfectly fine IF you are serious about saving for a down payment (as you say above) that will allow you to buy a home on favorable terms available to owner-occupants.

The property isn't doing any of the surrounding ones any favors by only getting 61% of FMR.

I think the missing piece is you can go through the motions but the vast majority of people in real estate is missing the “it” it depends on you as a person and what your strengths are.

@Matt Nico  @Anthony Sgro...not trying to hijack thread, but the DSCR loans are definitely back in motion. 

My wife is not in favor of having contractors work on the rental during vacancies, doing showings during the Pandemic, so this suit us fine.

While there is no black-and-white safe harbor rule for your circumstances, I have a feeling that we could interpret these Regulations in your favor. 

Some owners pool a lot of assets under a large policy, so their premium may be much lower than yours, or vice versa.Additionally, with the supply/demand dynamics favoring sellers currently, you will see properties selling for what they can generate, not what they are generating.  

Once you have it furnished or decorated to your style, do yourself a HUGE favor and get professional photos taken.

But that longer time horizon can actually work in your favor.1.