Personally, and what I would do for my clients, I would connect with a local community banker to discuss the property and see if their bank would entertain this type of financing (not all banks like doing this type of deal).

Then at the last minute, I had a strong instinct to pull out and did not follow through.

Get SMLLC to start, you can elect S-corp when the time is right.This post does not create a CPA-Client relationship.

If you can make some relationships prior to that with agents in the area who do what you want to, you can find yourself on a team or at a strong brokerage that matches what you want to do.

I feel this gives me the flexibility to find the right solution for my client and not just sell what my bank offers.

If you didn't find a property manager yet, my company specializes in multifamily properties in the greater Phoenix area and are taking on new clients.

If you can save up for a slightly higher down payment your margin for success will be significantly higher.Also, I strongly agree with the "buy the worst in a great neighborhood, live in the worst unit of the triplex and slowly fix it up yourself."

I've found the easiest solution is to have a really strong banking relationship and then they will be able to provide non-standard offerings. 

Unless less you are a system-building guru and strong networker, if that's that case out of state investing should be more up your alley.

My developer client successfully defended the initial challenges and settled on this having PE rights, so he shifted the site plan to avoid the issue.