Most people that have limited experience go the thought leadership route.Start learning everything you can about real estate investing and then regurgitate it by writing blogs, starting or being featured on podcasts, blab about it on YouTube and social media.  

If you stop growing it wide early (more real estate) and you start growing it deep instead (more equity) you are limited in your final outcome.

The reason is that we have a relationship with a regional bank that will provide financing and which if we limit leverage to 50% will (1) charge interest at their lowest commercial rate fixed for 20 years with no balloon, (2) charge 0 origination points and no “junk” fees and(3) allow us to sell the property with either a sub to or a wrap loan without increasing the interest rate - in other words no due on sale clause.  

There is a good chance they would limit the loan amount based on either appraisal, or purchase price + improvements (ie project cost), whichever is lower.

If your losses come from something you "work" in, like your own construction business, they are nonpassive and exempt from PAL rules (although may still be limited by one of the other set of rules).Knowing how we love to call anything we do "business", the IRS clarifies what is considered passive and therefore restricted by PAL rules:1.

Hi Charles, A blanket loan can sometimes limit the amount of equity an investor can access.

@Jason Rowlett If you are in city limits, I would call 311, and ask about building codes and minimum housing size.

Now, its entirely possible the information available is limited and you'll not be able to get data.

To set up your LLCs for tax efficiency and asset protection, consider forming separate LLCs for each purpose (Investment, Property Management, and Short-Term Rentals) to limit liability and manage tax implications.

It seems as if the options for owner-occupiers of three-unit properties are pretty limited, especially if the building has a flat roof.