There was a guy on BP who tried to get one going down by Colorado Springs awhile ago called Bonsai Village and got as far as buying the land, but could never get permission due to NIMBY neighbors  and it got stalled in legal red tape until the  land eventually ended up being foreclosed on and turned into open space.

However, navigating the legal and financial complexities of Subto deals requires careful attention, so I’d recommend working with a real estate attorney to ensure everything is structured correctly.Securing private money for the closing is a smart move, but ensure your terms allow for flexibility in case of unexpected repairs or delays in cash flow.

@Robin CastilloLLCs are useful for legal protection, but they require separate tax filing, typically cost several hundred dollars to create, and most non-commercial lenders will not lend to LLCs.Commercial lenders will lend to LLCs, but their interest rates are significantly higher and they require collateral that regular lenders don't.I would not create a LLC specifically due to the issues in getting a traditional mortgage it will likely cause.One potential route though, is to get a traditional mortgage in your name and then assume the loan after a 6mo "seasoning" period with your LLC.

Establish a solid reserve fund (3-6 months of rent) to cover unexpected expenses or vacancies, which are inevitable over time.Make sure you're well-versed in local landlord-tenant laws to avoid legal complications.

I would not be confident the PM has a good legal option if they served pay or quit so late.  

Here are some Buyer representations:Enforcement/Legal Actions.

Make sure it's a legal triplex.

Building a closet in the bonus room addition to allow the property to be legally listed as a three bedroom.

We have tenants add .5x for a pet deposit in lieu of a $500 pet deposit (2.5x or 3.5x respectively) however there are some new pet fee and pet deposit laws coming in Colorado January 1, 2024 and we aren't yet sure how these caps on pet deposits will impact our use of Rhino for this purpose (see below re: legal definition of "Security Deposit").What questions do you have?

We generally will offer the cost of our Legal, which is about $1500 to get them out.