In the future, we are probably going to look for cheaper alternatives for flooring and cabinets.

But even the hint of an alternate use in the units (hair salon downstairs) suddenly classifies this as more expensive 'commercial' loan. 

Charlotte is a healthy market, there are also cheaper opps in the suburbs of Charlotte that could be attractive as well due to low barrier of entry and higher returns.

@Kevin Dougherty  I am trying to find an alternative to SFRs.

Make sure you buffet for the taxes resettingI’d only be attracted to these numbers if it was a “set it and forget it” type of property with good resale value.

I'm currently involved in some HoA litigation about improper reserve funds, and I can tell you that this area of law is very muddy and attracts stubborn people. 

They are targeting business travelers / professionals (it's their first time doing this, so who the ideal market is for them is up for debate - but the idea is to attract quiet people who can afford it).  

Alternatively, i have looked in the midwest states and it seems there are many properties that have positive cash flow potential.

Same everywhere, any listing priced well below market is likely going to attract multiple buyers offering over ask price.

Evidence would be a lease in the tenant's name, a current utility bill in their name at another address, and/or a copy of a current bank statement with their alternative address on it.