There will also be many homeowners who have had the properties in the family through generations and own free and clear but now still need to obtain a construction loan to rebuild. 

The common thought is to not rent to friends or family.

I wouldn't necessarily recommend that a family with 3 kiddos go out an buy an STR but since you already own it and have it furnished, its a pretty easy trial.

Here is the situation: I found a good multi-family home in upstate NY.

Has anyone invested with the Ian Djuric at the Blake Capital Group (https://blakecapitalgroup.com/) formerly Djuric Family Office (http://djuricfamilyoffice.com/)?

@Kris TohovitisI wouldn't recommend using your cash to pay off the mortgage on your primary residence since you can likely get a better return on that money by investing it.What's your buying criteria for the multi-family property?

If a family with kids values D+ then the probably already have it, so providing smart TVs where they can log into their subscription is sufficient. 

Quote from @Robert Ruschak: Would you skip the 700+ single family houses and scale up faster into multi-family?

This negative equity position is one of many reasons that adding ADUs in a single family zone is not typically a good RE investment.OP whatever you decide to invest in, make sure you do thorough and conservative underwriting. good luck You’re right in that the level of underwriting I presented wasn’t institutional level - but for your average person just starting out, institutional grade analysis often makes the thought of investing overwhelming.

Works just as well for a two family worth $1.2.