Talk to your neighbors, get them on board for your project as the first step. 

Assuming you look for a duplex, what is your price point and are you looking for turn-key properties or something along the lines of a "fixer upper"?

The key factor is the amount paid and the nature of the payment, not the payment method.

You serious think nobody did a boarding house until AirBnB..... 

But it's gotten progressively worse, now the only time he's passed on any rent to us is when we've threatened to report him to the Board of Realtors.

Well you received reply's from the top heavy hitters in the passive game here on BP.choosing wisely is key as noted.. real estate debt can be a great spot for the busy professional.

Another key point in loans is that the broker or direct lender will often try and include the costs into the loan, for some this is fine but you are paying interest on that money over a long period of time....FYI

It all stems from an angry neighbor filing a complaint to city and calling the home a boarding house.  

For instance, unless specifically called for in the Articles or Organization, LLCs are not required to have Boards of Directors, Officers, annual meetings, bylaws, resolutions etc.

For BRRRR, the key is ensuring your post-reno appraisal justifies the value for refinancing to pull your equity out.