On the flip side of that, someone else is lowering your cost of housing, it's a mutually beneficial situation.  

Income from rental real estate is sheltered by depreciation and amortization and results in a much lower effective tax rate.

I actually had to get enough units where I could offer tenants multiple housing options when I purchased properties rented at way under market rates and then (an embarassing number of times) personally watch tenants that would "suffer" from a rent increase turn down smaller (but nicer places) or  nicer places in a less prestigious zip code (sometimes only minutes away) before I realized that I was hampering my ability to earn a living in order to subsidize the lifestyle choices made by a some random stranger that happened to live in a property I bought.

With lower LTV, rates can be near 6's and up to 8's with higher LTV.

I have a lot of interest in the boutique hotel space and have found an on-market property near me with huge potential and lower entry cost than any other deal in the area.

In a different market, there may be lots of demand for individual rooms and little demand for the whole home, making rent by room the better option.

The house is in a pretty great neighborhood with excellent schools and options to commute to most parts of the bay area and I am confident that I will be able to rent it out soon. 

I did an even “Lower” class of rentals and felt it was well worth my time and investment

Doing a renovation now and have the option to do x2 2bed 2 bat units or x3-x4 1 bed 1 bath units.

After rehab is complete, you can work with a lender to do a cash out refinance and get into a conventional loan where the interest rate will be lower.