Honestly, I've given up on finding cashflow anywhere close to the city due to rates and prices, BUT some other opportunities you may want to consider are:Live in flip - mentioned earlier in this thread, always a solid option in any market.Condo conversions - good money to be made from this and since they're a little trickier than a traditional flip there tends to be more inventory available that would allow for a profit.ADUs - come February 2nd, ADUs are allowed BY RIGHT on any SF property in the state, owner occupied or not.

@Jason Wray I actually already work with the Federal Savings bank and am currently refinancing one of my properties with you.

What are the challenges of passive investing as opposed to traditional real estate investing? 

I financed this property using down payment funds from 403B and a local commercial bank. 15% down from personal funds. 85% down from community commercial bank. 3yr balloon, 20yr amortization, 7% interest rate.

On the other hand, if you're aiming for long-term rental properties, getting prequalified with a lender specializing in traditional loans or DSCR (Debt Service Coverage Ratio) loans is key.

Was told initially it was a banking issue, but we will see what the latest is . 

Think of this;  if the buyer can't qualify for a bank loan,,,, why the heck should you stick your head into a note and mortgate noose??   

Jimmy,You need to show (2) years of 1099 SE income in order to use FHA, or traditional financing to get approved for a mortgage.

Keep in mind banks still pool forclosed assets together and sell them all together as a group to one company.  

The problem is: A traditionally financed low-down payment house-hack with traditional long-term rents simply won't cash flow during occupancy, or after, in many MCOL-HCOL markets in the US. 95% leverage at even 5.7% just won't work in a lot of cases right now.