The local area has a few attractions and similar STRs have done well based on what I see online)The plan is simple. 

Has anyone successfully qualified for a mortgage in a similar situation?

I have clients purchasing similar homes in the area that they also rent out as short term rentals. 

Hey Dennis, interesting question, and I’ve been in similar situations myself with 30 properties here in Tampa and managing 300 others.

Similar to you, I wanted to find somewhere less expensive, still close to the Bay Area (drivable), but without the high property taxes, more favorable tenant/landlord laws, no state income tax, and consistent job/population growth. 

REI offers steady cash flow, appreciation, and tax benefits, while business acquisitions, similar to the BRRRR method, can provide higher returns through operational improvements but carry more risk and require hands-on management.

I once had a client in a similar position, and we broke it down together to see what made the most sense for him;l especially considering his W2 income and the current interest rate environment.

I’ve worked on several similar conversions, and there are some unique factors to weigh before taking the plunge.

Similarly, if you put all Class D tenants in a Class A 4-plex, what do you think will happen?

The major concerns to me are the roof, the hot water heater, and similar.