Part of my strategy for growing my rental portfolio involves having them financed and paying the mortgage back with the rental income.

Part of my strategy for growing my rental portfolio involves having them financed and paying the mortgage back with the rental income.

If you are looking to grow and get into REI in a big way, aren't afraid of a bit of risk, want to be actively involved and don't mind getting your hands dirty, I would encourage you to buy multi-families in C/D areas. 

I’ve been involved a couple of construction related suits, it’s never fun, and you’re not likely to be happy with the outcome.  

Frankly I just move on if an HOA is involved just is not worth the trouble having them get between me and my prospective tenants.

Some items to consider are accessible path of travel (gravel is not going to cut it), potential elevator, potential historical preservation involvement, and the biggest issue is if a business can garner enough clients to cover the cost and still make a living. 

These properties were well known to the professionals involved in finding housing for felons, sexual offenders  and people with mental illness. 

Expect for there to be a lot of additional work involved in it - you basically have to block the top and bottom of every stud bay.

We wouldn’t be actively involved.

Does anyone have any advice or creative ways to finance a deal like this when there are so many risks involved and at a time when there is a lot of uncertainty in the marketplace?