If you consider living in 1 unit, it'll increase your deficit since you're not really paying yourself rent.

I would recommend saving a 20% down payment and once you have accomplished that I would then increase your retirement contribution.

Standard practices are there for a reason, if you deviate you are increasing your risk ten fold.

Many try and put a cap on increases. 

I would be able to get out of PMI but every option I’ve been given increases my mortgage payment.

@Matt Shumate Is this something you considering to increase occupancy?

Do I keep the rent stable, or should I increase the rent by a certain percent (5%?)

My single older tenant notified us she is applying to get licensed to do daycare in her home/our SFH.In Calif, we are permitted increase the SD to 2X rent because of the daycare. 

My tenants are on a month to month lease, at this time i also gave one tenant notice to rent increasing and the other notice that i would be not renewing their lease.Good luck and be open and honest with them!!

Once they are paid down, the cash flow increases greatly.