Generally your net worth has to be greater to or equal to the loan amount.

And they probably will if they had problems paying the rent at the lower amount, and now you're considering raising it. 

I recommend financing now at the lower rates giving you more money to invest now rather than later which may lower the overall amount you would have to invest and costing you more. 

Please click on the links, give them a read, and share your thoughts in the comments.First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp The second is a post that will help get you focused with your real estate investing goals:https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciatedThe last one is a post that will help you choose an “investor friendly” real estate agent.

Roommates would indeed reduce the amount of privacy you have.

But I can tell you he's lost about $200k in commissions as I don't deal with him and have bought a tremendous amount since.  

Also, if you move in for last 2/3 years, the amount of time  that you rented is known as non-qualified period thus, entire gain can’t be shielded with sec 121 exclusion that you mentioned.

The price points are much lower in Arizona than in California, thus the barrier of entry is lower and the risk as to the amount of possible loss is much lower too.In some markets, it is much easier to find properties that make good investments.

I am also saving a defined amount of money to meet a "raise money" goal in 5 years.

Please click on the links, give them a read, and share your thoughts in the comments.First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp The second is a post that will help get you focused with your real estate investing goals:https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciatedThe last one is a post that will help you choose an “investor friendly” real estate agent.