Are people building in the area? 

So, without getting into the weeds, you could buy a fourplex, then build 2-3 ADUs for rental income.

There is a lack of new building and with the Tesla semi-truck factory opening next year the pressure on the housing market is only going to increase.

You could probably live for free, build equity, and save more for your next purchase!

I have a different LLC for my commercial buildings vs the rental houses/apartments.

Purchase price: $2,225,000 Cash invested: $350,000 Purchased a 40k sqft ft mixed use building on Main st in Middletown, CT.

If you have not run your own business beyond real estate before, I strongly recommend that you get in touch with SCORE (Service Corp of Retired Executives) at www.score.org.They are a free resource (part of SBA) that will help you to evaluate the financials of the company you're looking at buying, build a business plan and to understand what you're getting into. 

Another option you may not have considered is to work with a developer and build a multi-family property in a desirable area, leverage ECO construction benefits available ($5 to $15 per sq. ft.) and cost segregation and bring in a management company to manage the property once it is ready for occupancy.

I promised that we would not build a new home; the home was his parent's, he wanted it to stay What made you interested in investing in this type of deal?

These buildings are zoned like hotels and have all the requirements you need to rent and make money accordingly.