Median price is high while median rent is so low in these markets, zip code 95757 is even worse in term of high home price but low rent.

Once you move into 5 units you are financing a commercial property and would be looking at local banks/credit unions.

Have you looked into cost segregation studies, bonus depreciation, 179D, historical tax credits, etc.?

By way of example, if you as the GP's identified this unique rear yard development opportunity that others overlooked and acquired this land at a low basis and/or obtained all of the entitlements where there is imputed equity and let's say a bank will now finance the property at a higher LTC than normal transactions, that is an example of why you can justify more favorable splits.

Something that we've done in the past as well is offer credits for anyone who left a review as well!

We have a line of credit that funds the rehab costs.  1, Form an LLC if you have not already. 2,Track all of your expenses accurately.  3,Talk to a CPA about what you need to track and how (Ex:  new appliances for a home are taxed differently than flooring or paint, insurance, Mileage, disposables, tools, etc.) 

I did explain to them their options they had (such as sell it on the market, keep it and file BK, get a loan mod, and credit counselors out there who could potentially assist).

However, the vacancy is really low in my area and prices are really high so it’s a gamble most house hackers take.

Apt 2 rented at 1300/mth (2 bd)I would call the rentals B-/C because they are in a giant metal shop and low grade materials.So gross income of 76K annually.Expenses:Insurance is currently $14652 annually but that seems way too low when SFH go for that muchTaxes are currently 2800/yr, but I expect those to nearly double if I pay his asking price (so let's say 5k/year.

@Kristi TietzI'd be very careful using this tactic to get started, especially if you plan to use borrowed money to lend out such as HELOC or credit cards.