You need conventional financing for the building if you can get it as it is the cheapest.

In my current market housing inventory is limited and the builders are going crazy so large renovations or flips are out for now.

Then revisit the parking issue later, and what effect would turning a conventional financed property, into a 6 unit have on the mortgage?

I was seeking conventional financing.

Since you are just buying for investment FHA is not an option so you will be going conventional likely putting 20% down.

“Strong home price appreciation in many markets boosted profits for flippers in 2013 despite a shrinking inventory of lower-priced foreclosure homes to purchase,” said Daren Blomquist, vice president of RealtyTrac.

Because they have made conventional lending too high a hurdle?

For quite a few the delinquencies are so high even conventional won't deal with them.

Conventional financing is tough for small town, non-franchised eateries.Small town may mean aspects of commercial assessments like traffic count, location, tax issues, permits and regulatory matters in that business may not be too appropriate.

In terms of getting the higher returns, outside of venturing into northside I don't believe 10%+ return properties are listed on MLS right now.You can alway keep an eye out and maybe in spring some inventory will bring some better deals.