I then would have my tax cpa enter in or do it after discussing tax based items (depreciation- MACRS, reserves, year end accruals, reserves, etc.).

Since your friend will live in one unit, you could likely qualify for primary residence financing, which usually means better rates, but lenders generally want the property in personal names first.

(There's a continuum, I get it - but hopefully the sentiment lands.)Of your "questions" at the end of your post, I think your first outcome (1.) is probably the most likely and I would begin preparing for that eventuality (i.e. engage a L/T attorney, procuring cash reserves for non-payment during eviction, funds for extensive renovation). 

The Facts Are, poorly prepared people are not ready to do advanced technique investing.Now, if someone can pay off a loan with 30 days notice (cash reserves or a loan), this might be a good way to buy properties that have real equity and cash flow. 

This is expected to drop to @ 600k for 2026. they got wrecked on taxes for 2024 due to 100% reliance on W2 income.A few existing conditions:A paid for 900K-ish primary residence on a nice lake which has an adjacent undeveloped 100' lake lot that is flex zoned for SF, MF, or commercial (500k value).

Maybe edit the title of this post to attract local agents.And maybe try out the deal calculators on this platform, I believe you can analyze 3 deals for free -you didn't provide any numbers here for us to really chime in.It doesn't sound like this is your first cruise so I'm assuming you have a team assembled and cash reserves in place to cover vacancy/cap x, and repairs etc..I wouldn't kill myself to find a cash flowing deal at the moment - those are challenging right now, but I would more so strive for something that allows you to break even.

There are definitely homes out there that look and feel like townhomes but are technically classified as single-family residences, often with small lots and part of an HOA.In searches, it might help to focus on terms like "single-family home in HOA", "zero lot line", or even just filter by single-family and then narrow down by lot size or community type.

Here’s the breakdown:Property Details:      Location: Oxford, MSPurchased in 2020 as a primary residence via FHA with minimum down payment. 

Out-of-state investing has its own risks: travel time, reliance on contractors/managers, and the need for cash reserves if something goes wrong.It’s natural to feel like you need to “start now” or you’ll miss out, but it’s worth weighing the pros and cons of buying a $125K property in an unfamiliar market versus leveraging your capital in an area you know and trust.You’ll see plenty of posts about Ohio or other markets being “the best” due to jobs, affordability, and population trends—and there is money to be made in many markets.

That said, some local banks or portfolio lenders might structure creative terms if you have strong reserves and a solid plan.