@Zach Howard there is no agreed upon Classification in the 1-4 unit market.We've done our best to logically create a system for our market, mostly based upon relative sale prices, but also using crime rates, rents, occupant income and a few other variables. 

Quote from @Jacob Sherman: you can utilize no income no doc construction loans . fund 50% of the land 100% of construction upto 65% ARV .

My income doesn’t show itself as being very high, but I have a relatively large amount of cash to put down.

As noted above, up to 50% of gross rental income normally gets eaten up by expenses (taxes, management fees, utilities, landscaping, repairs, capex, etc).

I had to have Anderson re-do one of my LLC's from the other guys to save me money in annual state fees ..I look at it this way, as long as my business/investment income covers the costs I don't have a problem paying for reliable - worry free information and work.

I've never really done a deep dive in analyzing the area because it is a retirement community, median income is very low, and there arent a lot of jobs in the area.

My passive income would be $262 total ($131 per unit).

I'm trying to Figure out how to make this potential deal work.Seller wants to sell but not right away because they still use the house for some income. 

The PM vets I know will all confirm that you lose much less by lowering your rate of (monthly) rent than by missing an entire month of income! 

Well, apart from “if you give me $3000.”Luckily this is a co-living model through PadSplit so I have some income coming in.