1) Do a better job paying attention to heatlh - exercise, eating, enough down time, and paying more attention to personal relationships (family).2) Get a couple simple but boring project down at my day job business that I have been putting on the back burner 'because I can do them some day'.3) Get signed contracts on a couple deals I am working on : a group of a 4 plex and two duplexes that I am working on buying in my SOLO401K with a low down payment seller finances non-recourse loan!

Rental properties do generate cash, but they can also eat a hole in your wallet, especially when you have to replace a boiler or water heater or change locks or replace windows or fix a leaky bathroom.

I also consciously weed out the crap that tries to infect our minds on a daily basis.

As such, while the property prices are depressed and attractive (but the property tax are still high, eating ~30%+ of your annual rental income), so are the rentals - go checkout how many available rentals are currently active on the market in any area of SAN.

That class taught me enough that I can easily add a duplex financials onto my schedule E at the end of the year with the year end financial data my property manager would send me.  

After doing more research I have found that the PMI can eat up a lot of cash flow.

The interest carry will eat your profits fast especially if you struggle to get the project done and sold quickly.

The fees and interest can eat up your profits easily.So if you're looking to keep a rental long term, bank financing will typically offer the lowest rates and longest terms.- Tom

How is the functional use of the property (sleeping, living, eating) changing between the two groups?

Meaning their cost of debt is 2%, but they'll often loan at 1% and eat that difference as a type of price cut.