Here are the rules for a "Secondary Property" per Fannie MaeSecond Home PropertiesThe table below provides the requirements for second home properties. 1      ✓Second Home Requirementsmust be occupied by the borrower for some portion of the yearis restricted to one-unit dwellingsmust be suitable for year-round occupancythe borrower must have exclusive control over the propertymust not be rental property or a timeshare arrangement1cannot be subject to any agreements that give a management firm control over the occupancy of the propertyIf the lender identifies rental income from the property, the loan is eligible for delivery as a second home as long as the income is not used for qualifying purposes, and all other requirements for second homes are met (including the occupancy requirement above). 

In addition, there is a portion of the homestead exemption application in my county that asks the following: "Is any part of this property rented or leased?

Do we just retain that portion of ownership? 

Market a unit with used carpet and you will lose a non-insignificant portion of qualified applicant.

If your neighbors have access via the alley, you wouldn't be able to acquire a portion. 

You potentially create an issue (where there need be none) when you start doing things like applying a portion of the Lease payment towards the future Purchase Option.

I’m running into an issue, during inspection we found some water damage to a portion of subfloor and joist under kitchen sink.

I pay for the water bill but bill the tenants back their portion. 

Increase the rent to cover what you expect their portion of the electric to be and include all utilities.

You can also look for deals and partner with someone to do a JV where you will learn a lot from that individual and get some profits but not be responsible for the entire capital investment or financing portion of the deal.The possibilities are endless and people have done more with less.