Do lenders take into account that I'm paying half of the loan amount?

You need to accurately estimate the amount of repairs you will need to perform.

We want to live in this home for some amount of time.

Normally, when an investor or management company has trouble renting a place it's because the rent amount they're asking for is too high or the place isn't quite ready to rent yet.

It is better to do a deal than skip one just because the dollar amount for financing is high.Good luck in your search and know that if the numbers make sense, you have made the right choice.

5A you need to put 30 or 60 days in and then that is the amount of notice you need to give after the initial term to terminate the lease (actually that notice can be given before the lease is up to end the lease on the lease end date.

Not to mention the amount of damage a dog does to the inside of the house.  

My guess is it depends on the AMOUNT and TIMING of cash flow coming back to you during your holding period, which is what IRR measures.

Here's another novel thought...this one you MAY NOT be comfortable with, but here goes....see what Section 8 pays for rental units in the area the duplex is in....If it is MORE than what you are getting from the current tenant....if it is, raise their rent....if they don't like it when you tell them you are raising the rent....get them out of there...and put section 8 tenants in there.I have 8 units between Cleveland and the Sn Francisco Bay Area....half are section 8 tenants....half not....guess which ones give me the least amount of problems? 

For our situation, it would cash flow and the amount of equity we would receive wouldn't be enough to purchase another multifamily rental.Another option for you is to refinance into a new loan, rent the home, and use the refinance proceeds to buy another property.