The income is also subject to self employment tax which is both halves of medicare and social security.

Hopefully you have a security deposit as well.

And I'd target deals that the seller will finance, OR, get private money (not hard-money) and give them say, 6--8% interest only for x (maybe 5) years. 

They may require you to get a new tenant before closing (have a signed lease and security deposit). 

I would consider putting a cheap wifi security cam inside the front door to get notified of motion. 

I put all of their names on 1 lease, though give them the option to pay their portion separately, always take 1.5 months security because college students love banging counter tops, throwing beer bottles, and tossing each other into walls after 2 shots of gin.Students typically get their refund check end Sept-ish, I give them an option to pay Fall semester Sept-Dec (4 months) and spring semester Jan- May (5 Months)  up front, with no discount. 

I secure the property and does the rehab, and he is paid on the back-end once its occupied and refinanced.How does a deal like this work?

I am seeking to use the BRRR strategy to purchase the property with private money eventually doing a cash out refinance and paying back the private money lender.

I recently connected with a local investor who has 20+ years in construction and uses private money to buy properties.

As such, in an effort to satisfy my own curiosity, is it ridiculous for me to consider cross-collateralizing two vehicles to secure a loan and get started with a house-hackable duplex or other small investment property?