The concern from the secondary capital markets lies in the following: Residential assets are appraised as, and commonly zoned as, their highest and best use.

Interesting to hear that people aren’t familiar with this as it is very common.

Utilities start-up fees4.

The reason I ask is that depending on what financing option you utilize, if that bank requires you to close in an LLC then the 1031 exchange may not work. 

If the home has to meet special requirements (a common one is residential sprinklers), then you can potentially charge much higher rent and have higher cash flow on a long term lease to these operators.

@Mitchell PetroskyHere is a structured approach to house hacking, including getting pre-approved for a loan, identifying an ideal investment property, building a trusted team, researching and making offers, managing the property effectively, and overcoming common challenges.

If it's two mortgages, how common is it for a bank to do two at once for a new investor?

Most developers would just utilize the extra yard space for outdoor storage.

Luckily, our insurance iscovering our rent and utilities until January 2025.

Is it just a matter of reaching out to GCs and asking for a list of generalized estimates for common rehab work?