3️⃣ Management Model:Ideally I'd furnish the units, rent by the room, month-to-month or flexible leases.Tenants would mostly be airline crew who rotate in/out, but I'd also consider travel nurses or corporate crashpad style if needed.Property would be owner-occupied for FHA loan purposes to start.4️⃣ Cash Flow:Assuming a 4-unit at ~$700K purchase:Traditional rent: ~$6,000/month (mix of 1-3BR units)Rent-by-room / crashpad model: Could bump gross rents to ~$8K–$10K/month if fully optimized.After mortgage, taxes, insurance, and utilities — possibly $2K–$3K/month in cash flow, with higher upside if turnover stays low.5️⃣ How to Get It Done:FHA 3.5% down to start.Conservative underwriting to ensure property works as a traditional rental first.Build out one unit as a crashpad while keeping others as standard rentals to test demand.Use fully furnished, automated systems (code locks, turnover cleaning, etc).Would love advice from:Anyone running crashpads in NJInvestors near EWR or other major airportsLandlords with experience navigating NJ’s DCA rulesCreative legal/operational workaroundsAm I thinking about this correctly?

That said, just like with the competitive short-term rental market right now, there is always demand for a place with style and amenities in a good location.You've got a good location, but I guess I'd worry that whatever was preventing your STR from thriving would likewise hinder your MTR.We have an MTR condo in Denver and two 4br MTR homes in Colorado Springs.

They were 3 bed and 2 bed + flex room units in a desirable neighborhood where the housing inventory consisted of an abundance of quality for-sale housing but the rental inventory consisted almost exclusively of vintage garden style apartments and "tired" apartment units over commercials spaces. 

PITIA (debt coverage)No tax returns or income verification — just property cash flow, credit score, and reservesGreat for experienced investors who want to scale without personal income limits Documentation You’ll Likely NeedHere’s a standard set of docs to prepare for either commercial or DSCR-style financing:Property-Specific:Rent roll (current leases, even if month-to-month)T-12 or last 12 months of expenses (if available — pro forma if not)Purchase contract and seller disclosuresAppraisal (ordered by lender)Borrower-Specific:Credit report (680+ usually needed for DSCR, higher for bank loans)REO schedule (all properties you currently own)LLC docs (if buying in an entity)Resumes or investing experience (especially for first 5+ deal)Optional but Helpful:Market rent comps (if you’re planning to increase rents)Rehab scope & budget (if value-add)Exit plan (hold/refi/sell — some lenders like seeing your strategy) Quick Tips:DSCR lenders have varied criteria, so shopping lenders is key (some want 1.20 DSCR, others will do 1.00)Start prepping your property package now, even if you don’t have an accepted offer — it speeds up approvalsIf you plan to BRRRR or refi later, make sure you’re buying at a price where improved NOI justifies the future valueHappy to help you put together a sample loan package or connect you with lenders who work with 5–12 unit properties all the time.

I have a slight variation on the question:For context, building some 2 bed2 bath Spanish modern style ADUs at my property in Los Feliz, Los Angeles, CA.They are intended to be luxury ~$4K/mo units.Given they are "luxury" units do you think we will be able to get away with LVL?

Myself, my style is we generally set payments based on a 30yr amortization schedule.

And a 2008 style credit event doesn’t seem to be on the horizon anytime soon.

I focused on shared-room "hostel-style" listings, which became my niche since that's my personal preference when traveling solo—it's the best way to meet people and get the most out of the experience.By the time I got to the fifth property, I was stretched as thin as humanly possible.

In fact I’ve spent a lot of time considering branding in a “boutique” style to align with this limited approach.As for insurance, I believe an E&O policy will cover my needs since I won’t have a physical office or business property to insure under a general liability or BOP policy.

I do have a few strategies that I have implemented to still grow door-count quickly, utilize multi-family style investing with single family homes, and make sure you are mitigating risk as much as possible.