Once that avenue is exhausted, go the single family route using conventional or government financing. 

It seems like your ROI is basically the same in each option, but you are taking on a much bigger project to convert a single family to a four-family.So basic calculations, since we don't have a full financial picture, i.e. what does financing of each look like?  

Lenders unfortunately don't want to foreclose on a home with 6,7,8 homes on a property that's a true single family home.

Take for example, while representing buyers in single family transactions, during the negotiation, I ALWAYS ask the sellers to credit the buyer(s) up to 3% of the asking price toward the buyers costs.

Nonetheless, I could see applying this law but only to rentals owned by a single person above a certain number.

@Bijan SabbaghiYou don’t that’s the challenge - we pull data from several places as a note holder and for example and currently we see less than 20% actually going to foreclosure as most are ending in bankruptcy right now due to borrowers equityThe ones that are under water are typically going back to the bank.Best bet is to find properties where deceased or maybe divorced to get higher chance of actually going to foreclosure

We read what you said and we understand it entirely aside from the false accusations you tried to make in your paragraph.What do you want us to sit here and go back and forth with you on every single detail?

I also recommend starting small with a duplex or single-family home to learn the ropes before scaling up

At the time this method was best for us because we both had recently graduated from college and had over 100k in student loans and car debt. fast forward to now we completely DEBT FREE besides our home and we are looking to purchased our single family/forever home and keep our multi and rent it out. 

I recently used a structural engineer to do a visual inspection of one of my single family rentals.