Lower deposits (instantly), higher cost of funds, and lower asset values all lead to less bank appetite or ability to lend (in a big way). 

Then throw in increasing rents and CAP rate suppression and the market gets a bit squirrelly (technical term).

I know that I don't have the appetite or desire to flip houses and that I love single family homes in historic districts because of the architecture.

That said, try to get a grip on their risk appetite and view of the tax code.

@Bruce ReevesSounds like you’ve put a lot of thought into this already.One suggestion would be to run a few more scenarios where the buyer pays off the seller financing at 1, 3, 5, and 7 years and see how those might affect your appetite to go that route.

Is a motel even a legal use, since in typical zoning that is a lower class than MF.For apartment conversion: conversion budget, ada upgrades needed, fire suppression and emergency exit requirements, occupancy, management.  

If you have the appetite for risk... and "make it work."

CMBS financing down 80%+ and commercial loan financing is down 70% from the peek when rates were low and the appetite for making commercial loans was very healthy.

Additionally, I'm curious about the appetite for nicely renovated antique homes in the area, some of which are selling in the high $200s even apparently C class neighborhoods. 

Each one has a different appetite for lending.