That being said, it is another part of your property that you can use to generate income and in this area you can hit the 1% rule before expenses.

If I was the buyer's broker, I would have checked myself to protect my client.If they had, then they would have found out it was not a three family.Its a valid point.In NM, our zoning / city doesn't post # of units publicly, only high density residential or low density. 

In moderate- or low-resource areas, developers also need to hold a public meeting within 45 days to gather feedback.

There isn't enough cash flow in these deals to pay the mortgage, monthly expenses and the HELOC that I'm trying to leverage against.

So, if interest rates are a buyer’s primary roadblock, then I recommend negotiating a rate buydown at a seller’s expense or looking at new construction, where builders are offering rate reductions and other substantial incentives.What if I’m a seller?

In reality the more expensive the house the less the work.

Higher interest rates on conventional loans may result, as the government backing currently helps keep rates low.

We're an appreciation market, not as much of a cash flow market here, unless you're putting a large down payment or actively managing STR's.Buying out-of-state can get you more cash flow, but the tradeoff is less appreciation (usually), and cash flow can be eaten up by maintenance and expenses.

The median home price is also very low nationwide which creates a low barrier to entry.

@Travis GuttingAssuming you are trying to keep things low-budget, here are some options:Driving for Dollars – Look for distressed properties and contact owners directly.