If you are thinking of out of state, I caution you to wait till you are in a position to scale quickly. 

Yes, I will definitely be honest when answering any questions, don't want to end my career in jail :)  I'm just trying to strategize and figure out how this approach will impact my ability to obtain loans.  

Let the property sit empty until you are fully educated on the finances of income property investing or sell it and be free from th eresponsibilities of managining properties and tennats.It only come down to th enumbers, do not make any decissions until you know the market. keep in mind most homes make for very poor investment income properties and will be more of a financial burden than a benefit.In your position I would have it listed with a real estate agent and sell.

While I do feel I am overpaying based on the arv value of the properties, I am comfortable with the price due to the owner finance and positive cash flow that the property generates.

If you're able to position create an ADU the fees should be much less.

Canton happens to be my favorite neighborhood due to its close proximity to 95, major shopping outlets, the water, and overall positive vibe of the Community.

I would advise lying about it because if you get caught, there can be serious consequences that will impact your ability to invest long term.

I would be also looking into reinvesting the earned cash flow therefore continuing to make business if I have a positive relationship with them. 

I think I may have seen that property, unfortunately we weren't 100% positive we were ready to buy again until now.

I ran my numbers pretty conservatively and still see a $350+ per month positive cashflow.