The other thing to note is most times Pref equity is pretty save assuming a 10-20% market correction but in 2021-2023 we saw a 30% correction meaning pref equity in deal specific deals were underwater without any options.

Another option is to explore private lenders or HELOCs to cover the equity.

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. 

It's possible to find cheaper options but make sure you evaluate the coverages offered.

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.

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.

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.

Getting into multi family in PHX is a bit of a high barrier to entry and the number of options you'd have are super low. 

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. 

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