So the area is desirable and on its way up.A few questions -Would I be eligible for SBA loan since i am doing business out of it?

It's definitely not considered a desirable option to most buyers.Colby should be able to shed some more light on this.

Just planning this as an expense because I will need a level foundation and subfloor if I want to address interior upgrades, so this can't be deferred if the plan is improve and raise rent.Running estimated numbers on 5k per building to level them (not even sure that's totally needed yet) and putting rents to market rate gives me a 5.5% cash on cash.Budgeting 5k per unit (again maybe too high but assuming I'm outsourcing a lot) and moving rents to market of $550 each puts me at a 7% cash on cash with two adjacent improved property on a desirable street in my area.

What areas are desirable?

If you're looking for cash flow, you have a pro-forma ROI that you're seeking to get in return, and there will be a price at which your desired returns are acheived. 

I live in Port Townsend, WA, a very desirable place for retirees with $.Thanks!

So the area is desirable and on its way up.I am about to send him my letter of intent but I need to reach out to my commercial contacts.

@Strom LeeIdeally you'd want to start by making a decision on whether you have the bandwidth AND desire to be active?

Option 1: getting out of this less desirable area with plenty of cash in hand to fund more deals right away.

Boston is a desirable travel destination, maybe you can factor in AirBNB for your multifamily and see if that makes the numbers work.