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? 

I am also willing to be actively involved at first but the ultimate plan would be to have a good chuck of it be hands off and be active in deals I enjoy.

. :) home is worth 700k as is: so they offer $700k minus 6% bc there are no realtors involved... or minus $42k and each pays its own fees. 

The mortgagee has no involvement in the property, reports/collects no income nor pays any expenses.

But I wouldn't get involved in it.Good Luck