Here’s an example of what I've used if they don't qualify based on what's on application. 

In addition due to prop 13, the tax base is a fraction of if it sold today.   

So bye-bye all the Brrr's and Multi's and what not, we need SIMPLE, right, a good simple SOLID base-hit, right. 

@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. 

It would be based on the scope of work of the renovation that you're doing comparing for values in its as is condition and values after rehab 

However, this is not specific legal advice to you, just an opinion based on the circumstances described.Do I Need an LLC to Invest in Real Estate?

Thanks.I’m based here in NY and my process to obtain title in my company name has not taken 2 years.

Basically, the further you get away from the city the more potential for cashflow, but you're also dealing with a different tenant base that may be tougher to manage.

@Robert MedinaI agree with @JD Martin that you’re in a strong position with $600/month cash flow and a solid equity base.

Based on a quick answer from Perplexity it seems like there would be no issue with you buying the home and collecting passive income, but you may not be allowed to manage it yourself since that is considered active work.