I was particularly interested in buying a commercial warehouse and rent it out.

More diversification, more options.Of course, I only have two SFRs at present, but plan to low-ball on up to 6 REOs next week to take the banks' temperature.

. = $31,800 year - 50% rule = $15,900 NOI = $159,000 at 10% CAP.With cash in my hands I would bid max $100k, with financing at 20 years with max 7.5% I would bid not more than $80k.Problem is owner pays utilities not so good but with these prices you can compensate that and in Louisiana you have higher temperatures in winter :).You can try and bid $55k and see what happened but its more possible your first and last bid on this propertie.

The property had a large commercial shop warehouse, a 3 bed 1 bath house, and a former manufactured home site that had seperate well and septic hookups from the main house.

A simple, low cost method...especially if it is only a problem for a few months out of the year...is window units (for heat or a/c) or baseboard heating, to help supplement the temperature provided by the HVAC.

Seems much easier to find off-market deals in office, industrial, business, warehouse, ag / orchard,  etc. 

Would you rather be home based in the Bay Area with tons of things to do nearby, good weather, lots of nature, etc. or someplace with little culture, extreme temperatures, bland immediate environment, etc., etc.

My current portfolio is as follows:12 SFR (3/2,4/2) in lower middle income neighborhoods not leveraged getting about 12% IRR4 Duplexes(2/1s) leveraged with 25% down getting about 17% IRR (mortgages on the two lots with 2 duplexes on each lot @5.25% rate) no escrow.All purchased at 10%-15% cap rate( i analyze deals as a flip) bought the houses between 80-150k and are all worth about 200-225k now. duplexes bought at 145k each worth about 175k-185k each. so there is some meat.I own my primary residence free and clear as well as my office/warehouse where i work out of.

The conversion was actually 12,000 square feet of warehouse space in the back of my office building. 

Where to start; I have a very specific location in mind to start a daycare because the need is guaranteed business.There is a current property for sale offering an exciting business and SFR in the listing: The current business is a warehouse I'd love to turn into a daycare with my own specs.The problem: To purchase the property and renovate would be about $600K / to have a cushion myself for staffing a loan requirement would be about $700-$800KNow I've meet with lenders whom would be willing to fund the entire amount with a down payment of 15% of the asking with is great but the starting capital of $150K I don't have.A: Is it a good Idea to search for funding for the $150K to get the remaining funding?