Many people who got involved in the STR space are actually offloading these units as they cannot get the proper zoning or licensing. 

HI Hernan,You can always start off by house hacking meaning you live in one UNIT or ROOM and renting out the other vacant units/rooms to offset your monthly mortgage payment.There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible.

Presently, we reside on the bottom floor while renting out the top unit.

If you have not already used it, you can do an FHA loan with 3.5% down and buy up to 4 units.

@Marty HowieYes people are still investing, at least in residential 1-4 units. 

It's 25 units, off-market (we are direct to seller on it) and is a value add opportunity.

Who knows but we do know larger banks are more interested in wealth management than they are in 30 year low interest loans.Back in the olden days there were no loans for small investors and if you had over 4 units you were considered commercial and that was the end.

I am in the middle of turning over a unit and I really didn't want to replace the door. 

So I have a 2 story duplex in Houston, TX and each unit has a balcony.

Has any one converted an SRO to a standard multi unit building?