If you are going to do this type of business make sure it is in an area you can visit or make yourself familiar with, you have someone that is representing YOU at the table like your Attorrney, and you don't make decisions based on "we need to wrap this up". 

Here's a case study that would be dismissed based on your criterion:-Asset: Mix Use 11 Unit Building-Contract Price: $1.73M-Existing Rent Roll $15,800*Currently 1 vacant commercial space market rent $5,500 & 9 apartments all leased below market value (60 day termination provisions for each residential lease). -$650,000 Renovation Budget-Stabilized Rent Roll $25,400-"As Complete and Stabilized Value": $3.45MThat's a recent MLS deal in a B+ Philadelphia location with a credit tenant that's been there for 20 years in the occupied commercial space.

@Katie BustosWhen you buy a home with a rental unit, like a garage apartment, how you're taxed can change based on how you use the property and if you rent to family or others.

If lenders cannot collect the shortage this is allowed as your debt was eliminated.

I have house hacked so we have no housing expense, we cook most of our meals, hardly drink, bought our cars in cash, and have no debt.

Based on my research it seems like with a little rehab and managing a short term rental effectively, short term would likely cash flow more in a market like Tampa. 

If I had given them a loan with payments, it affects the debt to income ratio.

On the equity side by increasing net income and or decreasing risk, on the debt side by “working” the note.  

I understand there are risks to this too, but putting an offer, with the caveat of based upon complete financial review, might be more enticing for owners on the fence.

So examine per zip code based on geographical location.