And I have to assume rental rates for other unit will appreciate higher than inflation, plus my Dad's slight increase in his rent to me 'maybe'...I see this as a net gain for me as even taking a ~$3k loss (yes this doesn't include over costs associated with managing a rental) each year for say 10 years, I save $60k of an original downpayment and can push it all into as tax advantaged vanguard fund gaining hopefully more than my loss on a year over year basis.

Second, you’ll pay a higher rate with a shorter payoff.

Also assume that you are the one managing.Cashflow might be higher with the fully paid off, plus a fraction of the work.

We have a higher end rental in this area (albeit unfurnished) and I have seen my property management company advertise several high end furnished homes on their site (5-7k/month range), with some listed as short term winter rentals.  

The pull for conventional loans independently comes from us getting lower interest rates and 30 year amortizations (higher cash flows) but we dont know if it will get sticky during tax season being that we arnt all on the mortgage together.

Also remember the higher the finishes are the more the rehab is going to cost, I could go on and on because finding an ARV is truly an art but the only way you are going to get better is to first learn the basics then analyze as many deals as possible till you get the hang of it good luck!

And that some will disagree with as well."1% rule" = monthly rent should be at least 1% of acquisition costs; for some, acquisition costs include all purchase related costs PLUS any repairs / improvements needed immediately upon purchase."2% rule" = monthly rent should be at least 2% of acquisition costs; this rule applies more so for lower rent amounts, roughly $500 (and lower), and can be difficult to meet this rule at higher rent amounts.

They are doing so for the two reasons you mentioned along with higher returns versus their respective areas.

I don't know whether I'll end up using this option, but I'm really glad to know that it exists.The rates are higher than for conventional mortgages, but down payments can be as low as 15%.

If the work commute is more than 15 miles I think you'll experience higher than avg turnover rates, Jason.