I love this idea, but would first talk with your ciry to determine the building regs.Have you done any comparison to see the cost difference than just building a typical multi-unit property with small units?

They will direct you. 

That means we've gone through all the horror stories, scammers, folks running off with money, shoddy work, etc.So you'll probably find few, if any, folks willing to hand those relationships over.My advice would be to test folks out on small jobs and work them up to doing larger ones.

I have decided to start with small family ( 2-4 units).

Feel free to reach out to me directly, and we can set up a time to chat.

But despite it being a small town with a proportionally large military presence, I'm not seeing any mention of assumable loans on listings.

However, in residential I buy everything direct to seller. 

Let's not belabor the point, but Worcester's commercial tax rate is directly shaping what gets built in the city.Sure, you can spot all the shiny new residential developments in Worcester, but where are the hotels?

I haven’t had any problems getting them rented but my most upscale building took maybe 1 week longer per unit than the others to lease up because it is relatively more expensive than other properties in the same small town.

High level $200k for a $36k gross return is a low yield..however I think there are a few variables..with 35% down you should be able to get stronger lending terms, if the seller is workable you could entertain a concession towards a rate buy down for lower obligations, possibility to look at shorter duration (ARM) loans if you only intend to own 3-5 years which could also offer a lower rate.