@Zach Howard there is no agreed upon Classification in the 1-4 unit market.We've done our best to logically create a system for our market, mostly based upon relative sale prices, but also using crime rates, rents, occupant income and a few other variables. 

It would be based on the scope of work of the renovation that you're doing comparing for values in its as is condition and values after rehab 

they think 3k on a how to class is cheap and it is.. and all of a sudden they are going to make huge return based on % but its still small dollars.. and how are they going to convince a wholesaler to even use them. 

I do think house hacking and small multifamily are the best plays at the moment. 

while i do think it's valuable to analyze properties, it's really difficult to underwrite based on photos. 

Maybe talk to the city and see what the process is.Now of course you don't know how things are going to play out.

Based on a quick answer from Perplexity it seems like there would be no issue with you buying the home and collecting passive income, but you may not be allowed to manage it yourself since that is considered active work.

Hi everyone,My name is Cole Dobbs, and I’m currently based in Houston, Texas.

Basically, the further you get away from the city the more potential for cashflow, but you're also dealing with a different tenant base that may be tougher to manage.

You don't want to start playing sides here and getting involved in these kinds of debates.