If not, do see an option for simply using a commercial lease?

Low cash flow on initial purchase but with the average going up $100 a month each year, they cash flow heck of a lot more than the cash flow buys people buy in these secondary markets.

Initially, it looked like the city was going to say the smaller house was nonconforming because the property is zoned for single family residential, so the appraisal came in low at 218k with the big house and all three lots.

Pasadena has had a low inventory lately, depending on the price range of course, so finding a buyer shouldn’t be too difficult.

It was just a parking lot sooo  if that is the  case, I wonder can you do a similar thing but for longer term tenants kinda like Seattle did for to provide low income housing?     

My wife is a doctor, and I heard about the doctor's mortgage loan low down payment with no PMI, can this mortgage loan be used for investment properties?

It also could work if you can pick up the motel cheap and/or do the construction cheap.Also, be very careful with low-end motels because they tend to be crime ridden and that can be a hard thing to transition out of.But, do the work for your particular deal and see what it tells you.

The things I like most:*Low entry cost*Management wants to stay in place and by your words is solid... these types of properties definitely take a special touch*I think there will always be demand for this type of housing... because it is dirt cheap*Most CapEx done... major updates/renovations on the horizon would kill this deal, IMOGood luck!

So if they do it twice/year, you decrease their score for 10 points....and tenants usually start with really low credit score...how that's a help? 

Now, if you asked me should you take out a TSP loan and buy another rental property, then that math probably says yes, because you could get a low percentage mortgage loan and borrow even more money.