It did find some serious credit issues with the first applicants I had, and some minor ones with the second applicants.

If the house doesn't pass the occupancy inspection before closing, the municipality can usually issue a temporary occupancy permit.

Even in a best case scenario you would have seasoning issues.

On paper numbers and in reality numbers are completely different. this is because with riskier investments you have higher chances for evictions, maintenance issues, management calls, non payments of rent, damage to property etc.

Finding borrowers won't be an issue, so I wouldn't worry about that piece, just making sure you have an agreement you are comfortable with and borrowers and properties you are comfortable with.

.However...... with it being out of state you have another issue. 

The Yale Law Journal article, "Zoned Out: How Zoning Law Undermines Family Law’s Functional Turn," highlights this issue, noting that while family law has evolved to recognize diverse family structures, zoning laws have lagged behind, potentially hindering innovative housing solutions like co-living.Challenges for Co-Living InvestorsFor real estate investors interested in co-living, these restrictive definitions can lead to:Legal Barriers: Difficulty obtaining permits or approvals for co-living spaces due to non-compliance with traditional family definitions in zoning codes.Operational Challenges: Potential fines or legal disputes arising from housing arrangements that don't conform to local zoning definitions of a household.Market Limitations: Reduced ability to meet the growing demand for affordable, shared housing solutions.Advocacy for ReformThe Bloomberg article, "Why Are Zoning Laws Defining What Constitutes a Family?"

This is a trust issue.

Getting more mortgages does not help me with the two issues I outlined - spending less time on real estate and freeing up head-space.

However, shortly thereafter, we began to experience delays in draws, mislabeling issues, postponed closings, and unreceived funds.