You mentioned some small rooms, this often happens when a large addition is attached to an older smaller house. 

Using the rental property calculator, Cash on Cash ROI is -7% for the first year, and doesn't become positive till year 11, after we've had to invest an additional 46.2k to balance each month.

In addition, if there is an emergency, (I defer to fire, flood, and blood as my definition of emergency) you do not need to provide notice.

Seems like your experience as a title agent will be a huge benefit as you continue on this journey - and you'll be a great addition to the forums with that expertise!

I realize I can just wait it out and cashflow nicely, but I'd like to get the ball rolling on additional properties here at the beginning (happy to hear arguments for/against that too, btw).The solution I was thinking of was to do some sort of intermediate loan with private money until the 6 month period is over and then go with traditional lending at that time. 

In addition, I see two thing looking at your analysis. 

In addition, short sales are "as is" so an inspection is for my purpose and my lendor only.

I've bought, sold, and hold multiple SFR in addition to these commercial units.

I will be building out my back of house and adding a laundry room addition on the back of the house. 

The conversation was a bit more detailed than that as i talked about market rent range etc and they had additional questions.