Some banks even disallow a newly formed llc, for just this reason.

But as long as you're providing a decent space and reasonable rent rate- you shouldn't have an issue.

That's one of the reasons I love larger multifamily (50+ units) vs. 5-10 units.

This is one of the MANY reasons that we steer our clients clear of blanket loans when they only have 1,2,3,4....even 1-15 properties.   

Once you find a good one that is dependable and reasonable and does good work, don’t let it go Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I seriously went down this rabbit hole for about a year before I finally figured out the real reason why some properties downtown still haven't been renovated.

Has anyone dealt wIth this and foInd a reasonable solutIon?

I think 1400 is reasonable for the area but I would say the quality of the home would have to command those values.

For that reason, I ask: what are the most investor-friendly states?

Most people are so negative that they will think up 657 reasons why it won’t work why it’s risky why your uncle louie tried it and failed why you’ll lose money etc .. family and friends won’t understand , it’s not part of their language and they will view this as foolish and haphazard .