If cutting a check for $100k makes you squirm in your seat, then you should lean towards the more conservative options.

If you can either cut or drastically reduce your living expenses by living in one of the two units. 

My time is simply more valuable being used in my profession.

Refinance debt or earn more money and cut spending.

There are myriad reasons why the rates are lower for a primary residence vs an investment property, but simply put, if the mess hits the fan, what property are you going to let go first, the one you're living in or the one that you rent? 

To simply buy an above average cap rate means you have to buy an asset at below market value. 

Everytime you spend money for each property, you can designate for which property it is so you can record it in your accounting software.The PM company also receives the rents.This simplies the banking and accounting but at the same time, each property is in its own LLC for asset protection purposes.

I’m interested in finding someone who just simply cant afford their mortgage payments anymore and they want out.

You need to know the true value of what you are investing in. you cannot simply go by assessed value.

I had an applicant look good on paper, but the prior landlord said she was a pain to deal with and while always paid, just simply didn't follow the property rules, was rude, etc.