I love this idea, but would first talk with your ciry to determine the building regs.Have you done any comparison to see the cost difference than just building a typical multi-unit property with small units?

The idea behind this is it avoids having to get qualified by a bank and closing costs.

I have been having some success negotiating seller paid closing costs to help with rate buy down as well. - If you see a property that makes sense, I encourage you to get an offer in ASAP.

Currently, we have them in a money market savings account, but I believe there are better options out there that offer higher returns while still being liquid and low-risk.I'd love to hear from other operators:Where do you park your reserve funds?

The market is investor-friendly and has a low barrier to entry.Zip Codes to look into - 44111, 44102, 44109, 44125 

Can someone else recommend a similar low cost product that will hold up better in rentals, that looks like hardwood-ish?

We used an FHA loan for the low down payment option.

New construction may be an option, many builders are offering rate buy downs and closing cost assistance and then you get quicker appreciation when they continue to build out the community.

@Matthew Crane the answer is - maybeAt best, you can claim some of these indirect costs as startup costs. 

As long as you have proof of mailing you're okay on the time (not when she receives)  If you end up spending less to clean then you may have to refund some of the cost.