Hi @Malachi Gutt, focus first on the fundamentals: NOI (Net Operating Income), Cap Rate, Cash-on-Cash Return, and DSCR  these drive property value and lender decisions.

I am highly concerned about buying a condo because I've heard Atlanta condo rental restrictions are extremely strict, with many HOAs having rental caps and long waitlists for permits, which would prevent my long-term rental strategy.

That is in effect what you are doing when you allocate $0 for PM.Your maintenance/cap ex is far too low for 2 units (~4x low) if trying t allocate sustaining costs.  

If you plug in realistic numbers for an older 8-unit — especially CapEx and insurance — the deal will go negative very quickly.The other thing that jumped out: you’re assuming a $900k ARV, but your own cap-rate-based ARV calculation shows around $830k.

That’s why blanket statements like “low-priced properties can’t absorb cap ex” don’t hold universally.

Here’s something I’ve noticed lately while running numbers on small multis (2–4 units) across the Triad:A lot of investors underestimate how strong the rent-to-price ratios still are here compared to other Southeast markets.Typical small multi deals I’ve been tracking:• Purchase price: $170K–$260K• Rents per door: $900–$1,200 depending on the neighborhood• PM costs: 8–10%• Taxes/insurance still relatively low• Most deals landing around 6.5%–8% cap with light value-addNothing crazy, but steady, predictable cash flow — especially for out-of-state investors who want an easier entry point than Charlotte or Raleigh.The biggest tip I’d give newer investors is:Run your numbers with OPPORTUNITY in mind, not perfection.Cash flow still exists here, but only if you look at realistic expenses and know what areas rent fastest.I’ve been checking out different pockets around Greensboro and High Point recently, and there are still opportunities.

Pretty sure Saint Paul still has a 3% rent cap though they did roll some of it back for new construction and MAYBE building less than 20 years old? 

I'm being told investors are not willing to buy unless the cap rate is much higher than what is the norm for the market historically. 

Anyone selling $10K–$30K courses on this model is skipping the hard part: local law.Co-living can work great, but only with:proper screeningstrict house rulesweekly cleaningclear expectationscompliance with your city’s occupancy limitsThere is no legal shortcut that magically bypasses zoning + occupancy limits.If your city caps at 3 unrelated adults, the only legit ways to go above that are:Zoning for rooming / boarding houseConditional use permitsAssisted care licensing (totally different world)Converting to multi-unit legallyEverything else is “guru fantasy land.”

Therefore, even if allowed in your state, update your lease to specify that this payment is considered "pre-paid rent," not a security deposit (which has cap/restrictive laws separate from those mentioned).