The ground floor is occupied by a commercial restaurant, and the upper floor is designated as SRO (Single Room Occupancy) under a pre-existing non-conforming use.

Set up Zillow alerts for all small multifamily that "sell" (when properties transfer ownership landlords will be more open to talking) Network with small multifamily relators about buildings that are under renovations and will have multiple units coming up that need to be filled (problem) where you can "pre-lease" the unit and pay the landlord the 1st day it's available (solution) Look up commercial landlords that own strip malls and see if they have any residential properties.

Do I use subject to, yes, I made my first million using subject to, buying pre-forclosures.

Ensure your agreement has no pre-payment penalty.In my experience, private money loans (which is what this is, as also previously explained in prior responses) typically come at a higher rate ~ 8%-12%.  

The blue USB stick we give if someone is coming to the 3 day is a list of few hundred houses that are either pre foreclosures, probates etc.

Yes, rates are high, but dollar for dollar there are many positive and cash flowing investments to be found, or...made.A tactic I've been utilizing for buyer(s) recently is the deployment of seller concessions in the form of seller(s) contributions towards buyer(s) closings costs, pre-paids or interest rate buy downs. 

We are a capital partner and move like no Lender can move. thats where the great deals are going or at least what i see as its my day job LOLPS  in the old days  the west coast buyer had to get pre approved by the west coast mortgage lender and that included an appraisal up front so we knew the numbers would work then when rehab was done the mortgage brokers simply had the appraiser do a 442 update and the file closed. 

This is not a change of circumstances but your pre-mediated plan.

I am a building contract of decades, I have trained inspect dept's, journey in 3 trades, and over $200m in flips under the belt, mostly to pre '78' homes. 

Cash-on-Cash Return:If you're considering a property in a different market, cash-on-cash return helps compare how much immediate return you're getting on your invested cash.Formula:Cash-on-Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100High cash-flow markets (typically found in secondary or tertiary markets) often have higher cash-on-cash returns but may offer lower appreciation over time.3.