It's possible you may not have the land to meet the parking requirement for more units.It's also a solid plan because you can finance under residential and get the better terms.

Most lenders wants to see heavy rehab or construction experience to secure financing.

However, I believe I do not really need to according to the rules defined here:https://www.kcmo.gov/city-hall/departments/finance/tax-home/...

@Megan BrooksI completed the purchase of a new SFR for 120K financed via an All in One loan originated by Ridge Lending group.

How did you finance this deal?

Regardless of the great financing terms, it would be pretty easy to sink that equity into another investment property that beats that 1%-3% annual cash flow return.

When using DSCR financing, even when vesting and borrowing through an LLC or other special purpose entity, you will be required to personally guaranty the loan.

In 2018, along the Texas gulf coast, I purchased a group of (4) homes next to each other via owner finance.

In the current market environment I've been a huge advocate of seller concessions to soften the costs of financing, improve cash flow or limit down payments for other capital improvements (such as upgrades or furniture) but often (especially turn-key vacation rentals) come with strong buyer competition.

What are the IRS special tax rules for installment sales(seller financing)?