Some have restrictions on how many years (2 years on one that I had looked at to buy & didn't) you must own the property before you can sell or rent it (or if you can rent it at all), approval by the HOA of renters, strict policies that may have penalties / fines for non-compliance, over zealous HOA members / managers, and additional fees when transferring property or renting. 

I've searched the forums, but since credit is tightening I wanted to learn how you would finance this project today.

Straight from Fannie Mae: The unit must not have been previously installed or occupied at any other site or location, except from the manufacturer or the dealer’s lot as a new unit.FHA has the same restriction. 

During these Covid times many Private/Hard Money Lenders have tightened their underwriting standards but if your loan request is in the 65% LTARV range you should have some interest from Lenders. 

As soon as they found out what I was doing they wanted to slap all sorts of restrictions on it.  

Bidding during the exclusive is restricted to Owner Occupants only so the system will only allow those bids. 

After talking with our rep we also found out a lot of new policy providers restrict coverage to a 4-6 floor max and/or 36-54 total units per building.

And would it possible/better to rent the garage (or portion) separate from residential rental to get around covid restrictions?

How do you deal this, practically replacing all the tenants does not appear viable solution down the line with COVID eviction restrictions?

They may be able to do in-house mortgages that have less restrictions, especially for lending to LLCs.