If you want to scale using the BRRRR method I could send you a list of properties in terrible Philadelphia neighborhoods where you could easily complete the BRRRR and yes, you could theoretically "scale".

OH ya the sf neighborhood were top earners billionaires multi millionaires and same with Tiburoun maybe not billionares but very rich. 

One unit is occupied by a low-income senior not on the Housing Choice Voucher program and paying well below market rent.

At the time there were limited 3 BR rentals in the neighborhood, but achieved such high rental rates the properties ended up performing better as rentals than as a for sale project.

But, ultimately, it could work if you don't mind a low ROI.It could make sense if you look at a lifestyle rather than an investment purchase and you're just happy to cover your costs.

I'm keeping this property for the appreciation (in a high demand area with great schools) and low interest rate for now.  

City National Bank has a $50K grant program for homes in certain neighborhoods.

@Nate Jenks - @Andrew Postell did a great job clarifying the big challenge you'd run into pulling cash out with such a low down payment. 

The property is in a B-class neighborhood, and while I’m comfortable managing coliving setups, I’m curious about any potential nuances around refinancing and insurance for this type of property.Are there specific loan types or lending policies I should know when refinancing a rent-by-the-room property?

Some areas we push owners to invest in are West Allis, Bayview, Wauwatosa, and several neighborhoods in Milwaukee, including Riverwest, Harambe, and the East Side.