Rental area Comps: $1,600.00/unit per month (some as high as 1800)Repairs: none needed to rent one side (windows must be replaced soon)As I see the numbers:Income: $3,200 (potential)Expenses: $1,163.00 (Vacancy, Taxes, Insurance, Maint etc.)Mortgage: $1,690.00 (plus/minus $50 since we haven't locked rates yet)We appreciate everyone's help and advice - we are very excited, but the ROI seems low for an investment, however, this will act as an entry into RE investment and allow us a place to live and collect some rental income simultaneously. 

Your risks are having the funds locked up for 6+ months (assuming you keep it in your own name), not knowing what the appraisal will be (ie how much you can take out), and the future interest rate.Run the deals for your best and worst case scenarios- do you like the cash flow after the refi if you get 75% of $10k less than you think it is worth at 6-7%?

I know in our market were just the building permits per house/ unit run 40 to 60k each..  5k to me just is trying to lock in the buyer so the buyer has some skin and just does not tie something up with no consequences if they back out.. 

Why would you lock yourself into a lease with a tenant when you have no indication of whether they can be good tenants?

I have known a LOT of co-workers that have left Cali only to realize they are locked out of ever returning.  :-( My wife and I make a good income.  

I have limited experience with SBA Hotel loans, but depending on the structure you may be able to refinance with conduit debt and forego the recourse, as well as lock in to 75+% LTV, 30 year am, 10 year money (with mez debt maybe higher than 80%) with unbeatable rates (usually 275 basis points over the 10 year). 

If anyone has any recommendations, I`m all ears!!   

Install guys let themselves in if it is vacant using key from the lock box.

It is not that hard really.Your best bet is to get a great cleaning team that will be your eyes and ears.

However, since we live so far from the school especially I don't want the market to fall, then I am locked into this location for 10 years.