Produce a PoF and offer to get a letter for Pre-Approvial asap as you get notice. 

I would look for a very attractive cap rate before considering an investment here given the above-stated market factors.

Cash is King, so go with the property that produces bigger deposits into your account.

May not be worth it if you've got really attractive 30y loans you don't want to touch.(2) Sell a portion so you have a cash position.  1031 it into a DST with the intention to later buy more property in the next cycle.(3) Find a different market.  

Now they see the value in multi-generational conveyance of assets, and understand the importance of what it (the whole) produces rather than what they could buy if they sold it (the part – their portion/inheritance) all.

You have to be paying tax in order to apply deductions against that tax.When you invest an IRA in property, you have the expense of acquisition and maintenance, and the income produced.  

Here in Allentown/Bethlehem, they do not like to re-zone something as "rooming house", as that is where they typically have the most trouble given the quality of tenants it attracts.  

By Commercial if they mean they will have to review it as a income producing properity, but you can still get it as a 30 year mortgage (in your name), then yeah... that does not matter, it is their internal paperwork.Figure out what they mean, and while you are waiting, visit other banks.

Once that is reached, then you can work on the balance sheet.Increase cash flow by:1) acquiring passive income producing assets ( My priority would be to improve your acquisition skills to get better positive cash flow)2) paying off debt or reducing interest rate ( I wouldn't pay off low interest debt but I would certainly consider refinancing to long term fixed debt vs. short term ARM's)Good luck

Just gotta figure out if you have the energy/time to deal with potential tenant issues/money you're willing to pay for management.I have a rental in the hood, and it's wonderful because we made it so and designed the place to attract the right tenant.