I'm a Realtor with a couple properties listed in Boise, ID and a neighboring town for my investor/client that are currently rented as co-living or rent-by-the-room and getting killer income. (7.3% - 9.5% Cap rate) So far, every inquiry has been baffled by the concept of co-living or rent-by-the-room and immediately ask if they're being run as a halfway-house (which they are not).

now if you could get a seller to be the bank I get that you could smoke and mirror those deals.. but i would think those would be picked over low value or properties in the worst areas of town etc..   

Best bet is to carefully analyze the zoning maps and regulations or just call the town and ask.

Call the town and ask what they have on the town card for bedrooms and bathrooms.

Hey guys im looking at real estate in South America ,for the price of a studio here in the U.S there you can get a 3br +1000sqf house in nice area of town ready to move in, been pondering on getting a personal loan here in the U.S to invest in a house in SA, what banks are best for this type of loan, i would like a low interest and monthly payments.

or depending on budget, are you looking for more of town home?

I personally like to buy in towns/neighborhoods in which no new builds are possible within 10 miles because all the land is developed.

The house has 5 units; however, it is only zoned by the town as a 4-family.

Again, expect higher prices than your initial targets.Smaller Cities: Don't completely overlook smaller cities or towns with strong local economies (e.g., a strong university or a growing industry).

The kicker is you have to generate some kind of income when you're holding land (mobile homes, agriculture etc).