Also not having a penalty is good thing, Looks like I may have to expand my range of next investment to much larger area to fit within the 200% restriction.

Guess it depends on the nature of the properties (residential, commercial), your D:E ratios in each, terms and restrictions of mortgages (avoid ARM's that expire concurrently), anticipated vacancy rates and trends, cash flow and reserves, etc.

@Anthony DeRoche  Just reach out and ask the local bank as well, to see if they have restrictions.  

Stop by - happy to help.As for areas to invest - I don't restrict - if the building can create cash flow or equity I'll do the deal.

This eliminates the burden and restrictions that comes with a 203(k).Side Notes:1.

I am curious about the legalities/restrictions involved.

You will want to be sure you understand the type of leases (full service, NNN, or something in between), zoning restrictions, remaining term, expected CapEx on releasing (for TIs and commissions), etc.

As long as you invest small time low value your growth will be restricted.

I have limited knowledge of this kind of restriction.

Also, I work nights and don't want to deal with other's noise during the day, or having to put restrictions on their living conditions.