we are building a building just like this in Columbus Ohio except vertical. we added kitchens and all studios and common commercial and mixed it in. multifamily is much easier to finance. we got a similar valuation. we don't have to buy 1 million dollars worth of furniture either. apartment hotels are what some people call them but we are underwriting affordable housing. we copied the hotel development rezoning applications in our market but went for multifamily and I had it underwritten at 15 million and we just had the number one debt placement broker look at it and appraise it for 20 million because they added a tax abatement. hotel development works because of the nightly rate and higher occupancy and no kitchens in every unit.

Hi @Hector Lewis      How many units is the property?

Say you're doing this on a 4 unit that appraised for about a million.

Could all 4 units on the 4plex be STR?

Hello,I have a single family house in Northern California which is my primary and it has solar panels.

As long as you like your job and/or industry and could do it for the next 15 years, what you are doing would work perfect for your plan.As you gain experience, maybe you can move into more units per purchase or start to BRRRR.

Most lenders will require at least 25% for a 1-4 unit property. 

You could try house hacking, living in a multi-unit property and renting out the other units to cover expenses, or look into areas outside the core like Aurora, Lakewood, or Westminster for better cash flow opportunities.

I run into this situation a lot where owners buy a property and then they move out for some reason and want to rent out the property but unfortunately the property was not purchased as an investment and the income will not support the expenses every month.If I were you, I would look into a different strategy so you are able to have some positive cash flow every month.Have you thought about furnishing the unit and doing Air BNB, or furnished mid-term rentals?

I wouldn't want to own the units.