Enhancing Parking Facilities.

.), I'd recommend that the residential units fully cash flow the loan as my experience is that mixed use properties are tougher to finance as most lenders tend to prefer one or the other and something in the middle gets more difficult.For example, and granted I don't know anything about the area/neighborhood, I would expect this property (https://www.realtor.com/realestateandhomes-detail/111-NW-Har...) to be easier to finance than the mixed-use property you mentioned. 

An investor can enhance returns in the SM all kinds of ways. 

The bullet in the response that is standing out to me is:"(7) The accessory dwelling shall not be a short-term residential rental, as defined by City Code section 3-2-152(a)(2), for a period exceeding 120 days per calendar year."

Residential RE is not passive, even with the use of a PM.  

There is no universal right or wrong, it's personal, it should be a strategy that enhances your life not takes away from it.

My mom is a landlord in LA and relies on rental income from a few small residential properties.

You can't list your commercial rentals on their website, it is definitely geared for residential rentals.   

I'm really excited about the potential of investing in residential multifamily properties with my dad, who's willing to contribute the initial funds.We're currently working on getting our financial house in order, paying off debt, and building a solid nest egg.

Many more passive than residential RE.