Your suggestion of establishing a dedicated community within the regs of a local government as place for people use small-space dwellings as residences is a great idea.

@Darsh Patel Monthly insurance will need to be accounted for; such as dwelling, flood, & liability coverage.

Hi BP,I heard from a motivated seller who wants to sell a multifamily property.They report there are 3 units on the lot - a 2/1 and 2 x 1/1.In doing my due diligence I've noticed that only 2 buildings appear on the tax records (a 2/1 and a 1/1) and that the lot is zoned 'MDR' which according to the city's municipal code can mean 2 single-family dwellings or 2 2-family dwellings or one single-family dwelling and one 2-family dwelling may be constructed thereon and so used.From another source it said the zoning is LRR2* but I'm not familiar with what this means.

I am looking to purchase multifamily dwellings to buy and hold.  

As to FHA, 97% is owner occupied, not second homes and in reality, buying a 4-plex is tough because of the appraisal requirements for FHA, like properties sold within 6 months, finding 3 sales of multi unit single family dwellings, of more accurately, single family attached dwellings will be hard to do.

For my SFH's in Broken Arrow the dwelling policy is closer to 0.6% on my 3 properties.  

Matt - There are specific federal laws that prohibit steering that relate to financing principal dwellings.

I have a 2/1 property in North Oakland that's zoned for two dwellings.

I have $150,000 in dwelling coverage, $5,000 in contents, and $32,000 in rent loss.  

When urban-dwelling millennials start having children, and those children become adolescents.I know one non-millionaire family who stayed in NYC for the adolescence of their children.