Hoping this post helps out others who may encounter this in the future when buying a small multifamily in residential districts.

@Justin Holley I actually have not encountered this situation.

This puts the power back on them for true "nuisance" calls without feeling predatory.A key part of that agreement is what I call a Residential Package—the tenants can opt-in or out, but it's highly recommended.

and if what is there is even legal or usable.Assuming its not usable or that the best course of action is to redevelop, You are Likely looking at a zoning variance, unless the area is already mixed or changed zoning.in general when I've encountered these rural sellers that are seeing the area built up with new development they seem to think their land is worth what a finished data center is worth with facebook as a tenant....so yeah I guess assuming they want to sell at a land basis that makes sense it could certainly be a deal.

I've encountered plenty of hurdles and stressors, especially given the unforeseen issues with the market, financing or tenants in general.

The rule he'll encounter is the 100 mile FHA rule.It can be planned around but he would have to move out of the current residence first for 6+ months then apply using FHA from the hypothetical rental to purchase using FHA (mortgage planning counter to the rule).He could also use conventional 5% down (Fannie or Freddie Mac) to avert the situation above with FHA since conventional does not have guidelines that put conditions upon obtaining subsequent properties (such as that 100 mile FHA rule).

Search the BP for ADU appraisals to encounter numerous examples.

Because it takes repetition for people to remember things and you have to be top-of-mind when they encounter a potential client for you!

A full package that includes criminal, eviction, credit, and judgments/liens is the safest foundation.Add rental history verification.Some systems confirm payments with prior landlords, flag eviction issues early, and uncover unpaid balances or property damage that won’t show up in a standard check.

I have a scope of work document, investor package, and strategy info if you want.