This is the worst classification and is grossly unsanitary.

We have the freedom to purchase or sell just about anything (within the laws) in the United States without restriction to income or social class if the selling party agrees to sell and you have the cash to purchase the asset/item etc.Pooling outside investor funds is where the SEC comes into play.

However, it is not currently used that way, and is currently considered commercial property in state records.Zoning is not an issue, it is on a residential street with all normal houses.I guess the brunt of the question is, how is the commercial vs residential classification determined for the purposes of conforming mortgages?

*Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)*Don't allow for your own independent property inspection*Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)*Require you to pay for any renovation upfront*Sell only in cheap. low end neighborhoods*Don't accurately represent the neighborhood/property classification*Don't have consistent rehab standards for all properties*Don't provide a scope of work for the property*Can't provide references of repeat investors*Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)*Don't allow for your own independent property inspection*Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)*Require you to pay for any renovation upfront*Sell only in cheap. low end neighborhoods*Don't accurately represent the neighborhood/property classification*Don't have consistent rehab standards for all properties*Don't provide a scope of work for the property*Can't provide references of repeat investors

Ultimately it comes down to qualifying as a transient property classification. 

Real estate is just one asset class, if you want to grow as an investor, you need to learn different asset classes. 

We've had investors bid on plenty around columbus and central ohio but they are pretty strict about the classification between the two. 

I can't tell you what your area would be classified because I am only an expert in WNY.I can tell by cash on cash returns what classification a neighborhood normally is.  1-3% returns (assuming 25% down) is A. 

Thanks1) correct unless if that roommate was your caretaker and you were disabled2) you don't have to move out, it's just a Strategy you can implement  that Allows you to avoid departing residence classification 3) no equity required to use rental income to qualify upon vacating your current primary unless if your departing a fha financed house for a second fha loan (apply for a second fha under one of the four exceptions allowed by fha) then you need to buy 100+ miles under departing residence rules AND you need 25% equity to get that second fha loan.

I realize that the classification of A, B, C, or D properties discussed in this forum are basic rules of thumb, and can certainly vary by location, quality, age, etc.