Usually for first timers and low down buyers the underwriting is a little more simplistic than traditional buy/hold investors purely seeking yield. 

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

Also having a higher proportion of revenue generated through the residential component of the building does make financing easier. (3) The exception to the 80% rule I abide by is when the commercial space is leased to a credit tenant with a proven & sustainable business  or where the space presents the opportunity to attract a neighborhood amenity F&B operator (this is most beneficial in instances where you have a larger localized portfolio where these commercial tenants can positively impact the value of your overall residential portfolio).

LTR, MTR and STR work in most larger markets (~top 30-40 cities by pop, or be proximity to metros/attractions/employers).

The cost was going to be $13,500 for the whole project, and the buyer nor the seller was willing to pay for it.

I hear ya I would not want to have a spec build in SWF right now unless its a ultra premium where the buyers buy for different reasons.

This can lead to more opportunities and partnerships.Market Understanding: As a property manager, you'll gain a deeper understanding of the local market, which can be invaluable when you start acquiring your own properties.Steady Income Stream: Property management can provide a consistent income, which can be particularly beneficial in the early stages of your real estate venture.Skill Development: You'll develop a range of skills from customer service to maintenance oversight, which are crucial for successful property ownership.Brand Recognition: Establishing a presence as a reliable property management company can boost your reputation, making it easier to attract tenants and investors when you start acquiring properties.Cons:Time Commitment: Property management can be time-consuming, especially if you're dealing with multiple properties or demanding clients.Regulatory Compliance: Staying compliant with local laws and regulations requires diligence and can be complex.Conflict Resolution: Dealing with tenant issues and conflicts is an inevitable part of property management and can sometimes be challenging.Financial Risk: There are financial risks involved, including late payments or damage to properties.Market Fluctuations: The property market can be unpredictable, affecting both rental income and property values.Overall, starting with a property management company can be a smart way to enter the real estate space, especially in an area with a clear need for such services.

Thank you that is also what I’m thinking but there are so many different answers some refer to financed purchasers having only 60 days to begin occupancy - as a buyer who will not need financing that is where I am finding difficulty - our agent is checking but also getting different answers - I may just call HUD and speak to someone. 

This range often lacks economies of scale and doesn’t attract institutional-level investors.

I have multiple buyers on standby.