Quote from @Chad Clemons: I wouldn't recommend it.Lease option can be lucrative, but you really need to know what you are doing.

There are many options, so instead of me listing a million things, it would be more helpful if you could lay out a few options you're considering, and I can provide some feedback from there.

I got a quote for 8K sft retail from a construction company for around $120/sft, this includes site prep, utilities, metal building erection, exterior finishes, interior insulation etc (basically build the shell from scratch).

Hello all!I'm an experienced investor that's emerging from a difficult period. Need input / ideas / comments on following pls.I have 2 SF rentals that I'm facing foreclosure on as I fell behind w/ the mortgage payment...

New construction is also a solid option because everything’s brand new, and you’re less likely to run into issues with maintenance early on.As for research, I’d focus on the local economy and rental demand.

One option is to give the front house a credit for water based on averages, but I don't know if I would agree to that as a tenant. 

The headache of playing peacemaker between 3-5 unrelated tenants doesn't sound worth the premium management fee; not to mention rent by room generally brings in lower quality tenants which require significant more management.With that said, higher rates are pushing investors toward rent by room simply because it's the only option for cash flow (at least in Denver) which is why I have so many folks reaching out.If you currently have rent by room investments or perhaps you're a PM currently offering rent by room, I'd love to hear your feedback and any advice you may have. 

Sounds like seller financing or partnering with someone are your best options.

Those could be options you could use as well besides seller financing.

If you’re weighing options in Chicago or have an eye on emerging neighborhoods in that city, I can get you in touch with someone who knows their way around the Windy City’s rental regs and local quirks.