Hello Ilya,Where are you looking at purchasing your 1st property.When converting a property from a single family to a multi family, you will need to check on the zoning requirements, depending on your location, not every location has zoning.As far as lending goes, it is far easier to finance a single family up to a quadplex, than financing 5 plus units, the DSCR Market for 5+ units is extremely low right now, and there are few if any lenders in that space.For financing 1-4 units, there are Millions of dollars chasing those loans, so you can easily obtain long term financing, at rates between 5-7%.Please reach out if you have a property identified, and I can help you with financing options.

Louis as a market of interest.

Should I just go back to getting the property rented out completely and then market it for sale?

I am currently pursuing a Master's in Real Estate Development and Investments and have an opportunity to study in paris for a few months.During this time, I am to focus on the office market and investment strategies.

Well the fact that this loan could not sell on the market for $37,000 has me believing that this property is not worth near $85k and not even at the $40k the seller is asking.

They are not full time and really don't have a good handle on the market or the latest laws.  

The main hurdle that many of our borrowers face are the income aspect of it, especially expensive markets like the West coast.

I'm fine with combing the market for deals, just trying to find a way to legally secure financing without a due on sale clause raining on my parade.

Market OverviewThe Los Angeles office market is comprised of 210.4 million square feet in twenty-one geographic concentrations ranging in size from the 38.9 million square foot Downtown submarket to the Mid-Cities submarket, which accounts for 1.8 million square feet.

Ask any landlord how tenants that have been charged “under market” rent for 5-10 years act when you explain it to them and raise the rent even half way to market.