If I was the buyer's broker, I would have checked myself to protect my client.If they had, then they would have found out it was not a three family.Its a valid point.In NM, our zoning / city doesn't post # of units publicly, only high density residential or low density. 

Their guaranteed model was a 65/15 split with guaranteed payments of $2300 total per month.As what happened with user JosephSpear, HomeRoom reduced the rents without telling me.

Quote from @Clay Gross: I don't think it's worth it, I see a lot of goofballs with the peace sign on their hat and their car selfie profile pictures asking pretty basic questions in a lot of public fb ws groups. 

Or in low volume areas, a public/private partnership with existing child care centers. 

This type of deal can also help you minimize upfront costs, as you’re reducing the cash needed to buy the property outright by aligning the seller’s financial outcome with yours.While there may be details to work through, such as crafting a solid contract or ensuring alignment with any financing you bring in, these can be easily addressed with the right team in place.

2.Are there strategies to reduce the required down payment or secure better mortgage terms?

If the market is tough, I reduce the rent rate over the full 12-month term.

Selling at FMV avoids the gift tax but provides your child with a higher tax basis, reducing their future capital gains liability.A better strategy for selling below FMV is to sell the house at FMV on an installment note, then forgive interest and principal annually up to the gift tax exclusion amount.

Then do a thorough research on tenant applicants (note: leaving this to a PM may be hazardous to your financial health) and choose the one that is most “stable” with the best potential for long term tenancy.This advice is contrary to maximization of rental income, but IMO will reduce expenses of tenant turnover, property damage, property management fees so much that the difference in bottom line income will be quite small.  

Property management fees and software subscriptions are deductible, and depreciation reduces taxable rental income.This post does not create a CPA-Client relationship.