No active projects yet, but I’m gearing up to dive into multifamily properties, ideally 16+ units, with a focus on creative financing and NOI optimization.

Some other other options to consider that may be easier, would be these: 1) Take your $840k and have a money manager at Vanguard, Fidelity or Schwab invest it in individual bonds at a 4-5% return. 

I would hesitate to say 1-2 years to rotate out but closer to 5 years, and ideally I'd try to get the downpayment higher to at least 10%.I understand your areas though-- they're expensive.

As for your scenario, how many bedrooms would be ideal?

It was suggested that we create an operational company that will lease rooms to individuals in recovery.

Some of the easiest deals my dad did were taking a large piece of land and subdividing it into smaller pieces and then selling them off individually.

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.

I’ve got her dealing with 8 properties which have individual accounts.

Ideally your cleaner should have enough other work so that doing your property is available in their schedule but not required for them to pay their bills.

For example: the multifamily sponsors will usually pay the considerable extra cost required to do a cost segregation analysis and this will increase the investor depreciation in the early years (versus an individual, direct investor who often will skip doing this because of the cost).The advantage of the passive investment is that you don't do any work.