Honestly, why do you need an IRA if you can make double digit returns in a tax friendly asset class?If

I will counter there is still money to be made in any asset class if you buy right and understand the product on a deep level to help curb downside risk.I do think hospitality will be the most hit and have a very long recovery period.

-Despite being C-class if you're picky with who you make your tenants, keep improving your property and are on top of things you can avoid a lot of the nightmare stories; I've also found that there are less tenant issues with smaller multi-family (my 4-unit is made up of two one bedroom units and two bachelor units)To answer the other part of your question... prior to when I bought my property it was in disrepair and half vacant as the PM who ran the place was a clown who didn't fix things. 

I was looking to pivot to renting by the room and take away excess living space in favor of more "units" (for lack of a better term) when an investor brought up the potential of running into "brothel laws" which are most commonly spoken in reference sorority houses and with x-amount of unrelated women living together to fall into this classification. 

In general, the ones to avoid are the ones that: 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 Require you to close before a tenant is in placeFeel free to contact me if you'd like any help.

I've pushed through it however and as Eric mentions people have pushed through in Chicago as there are projects that have been completed.Also the point on classification of the structure, this may also be an areas that can be resolved with education of the council/bank/others that you are talking to.

My lender is saying the loan will not work because of the classification on my first townhome. 

In general, the ones to avoid are the ones that: 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 Require you to close before a tenant is in placeFeel free to reach out if you want anymore insight.

You simply have to deal belly-to-belly with your tenants in this property class if you don't want to make your life hell.

It also depends on the current market for that class. If