It’s still something to pay attention to because if this is needed to sell homes and keep occ up then you need to be confident with the demand for your product in the market but it is not abnormal for this type of strategy in our industry, especially when a high volume of lots are being infilled and leased up quickly.

Do you have the option of terminating the lease for owner occupancy?

I was certain that even adding a half bath onto the backside of the house will bring up the value a ton considering at full capacity, 4 people would have to share 1 bathroom, and adding a half bath will double the showering occupancy for the most part.

In my experience, it is pretty standard for second lien lenders not to allow for a non-occupant co-signor.

I am not a fan of excessive student loan debt  (think six figures with a degree in art history) but yours looks 1) manageable and at a reasonable level; 2) as stated above, it is very likely some of the lowest interest debt around; and 3) not sure it has been noted, but it is likely deductible, depending on your income level....so as the board says, the chance at appreciation, building equity, rent saving and more tax breaks as an owner occupant of a duplex, triplex or fourplex makes the investment win when you run the numbers over time.

FHA has a one year owner occupant requirement but if you look up the rule there a several grey areas that would allow you to vacate prior to the year. 

It is pretty clear this complex is located in a desirable area as occupancy without improvements is 93%

There’s a wonderful world of financing out there that isn’t that creative or complex just not in the box. yes most of these are for non owner occupant loans so that is an issue but let’s you get the deal. 

Obviously more rooms=more occupancy=higher nightly rate.

By definition, they use hotel/motel which generally states a “A building in which there are guest rooms designed for temporary occupancy individuals on a daily rate to the general public of 30 days or less.”Then you look at the actual zoning district your building is located in and you most likely find a hotel/motel are not one of the permitted uses and therefore it is prohibited.Other cities actually have an ordinance.