My question to anyone out there is: Do you think it is possible to find any kind of suitable property in this neighborhood that could either be a multi or be made into a multi, and NOT have to buy one of the cheap, falling-down, gonna-cost-300K-to-fix properties that seem to be the only non-retail ones on the market?

I just bought a Duplex in Philadelphia and the previous owner never bothered getting a Rent Suitability License, nor had the property lead swiped.Our new single mom tenant isn't paying her rent and we gave her notice to vacate (she is month to month).

It would also BENEFIT them financially to attempt to find a suitable replacement for themselves (you would need the final approval for anyone they find).Remember THEY are the ones breaking the lease. 

The house has been vacant for a few years, and  was not winterized and some pipes have broken, The house is older and does not have a suitable crawl space to get under and fix.

If it is not suitable for SFR development, I would take a pass on it and keep looking.

After she purchased it we discussed with the remaining tenant that this was possible but only after we found a suitable tenant and that he and his roommate were still bound by the original terms of the lease (the rent they were paying is a bit low anyway).

Also, depending on your area, you may have to add more outlets to make it suitable for a bedroom and most garages are sloped slap on grade and are not sealed verywell to the elements.

As far as other rental suitability hurdles go, the property is a new construction and would not need lead paint certification. 

It’s no small feat to find a property suitable for a BRRRR in today’s market. 

With that comes a lot of risk of vacancy though, and to your point, it may get a bit expensive to convert the property into a suitable room-rental.