Curious to know if anyone has done a deal in a rough neighborhood (where collecting rents might be challenging) where one multifamily occupant is a offered the asset with investor carrying paper?

Additionally, if you're changing the zoning/occupancy, the town may require that you bring the entire properties up to code.

If I could also sell to an owner occupant with some updates that wouldn't put me upside down, I count that as added security! 

The reason I ask is that FHA loans are for owner occupants so using this for a rental may be a problem.

This would result in ~$830k of cash flow per month (before repairs, occupancy) or $9,960/yr.

Plus, if I chose to convert one of the garage bays into a single room occupancy (SRO) or dorm (3/4 bath and kitchenette/wet bar) then my income potentially goes up. 

Here we have to obtain what's called a temporary certificate of occupancy if we're going to buy a house as is.

I think the reduction reflects the increased risk of Anti STR regulations at both the city and state level.On the positive, it continues to achieve near 100% occupancy at rent prices that seem quite high.#3) The last 2 years of appreciation have been modest compared to 2011 to 2016.  

However, if you have a truly excellent single older adult, non-smoker, no pets, coming with little to no furniture, and he will be the only occupant, giving you a honking big damage deposit, plus he doesn't mind that you're gonna have it on the market while he's there, with showings, you might consider it. 

Our vacation homes only required  14 days of  occupancy a year.