You need to be very careful in buying a single unit because if the tenant becomes impaired, or just decides to not pay then you are out of luck.

In this form a “material defect” means a condition that would have a substantial adverse effect on the value of the residential real property or that would significantly impair the health or safety of future occupants of the residential real property unless the seller reasonably believes that the condition has been corrected.I think you have an uphill battle, unless the information from the foundation contractor shows it was still a problem after the repair, especially since you got a home inspection.Just my opinion.

Now if I even suspect there is some real impairment, I look into that issue first.Other than being behind on his HOA, what makes you think he'll be motivated to provide a good deal?

If you go this route, be careful because these properties might have major impairments.

It seems to me, that so far as the above does not impair the Mortgagee from the second legal process of a Judgement of Deficiency, which is where the court calculates the amounts due on to the Borrower not recovered by liquidation of the asset either at auction or through REO sale, then the Mortgagee will be in the same place, in terms of aggregate amounts recovered.  

Ask your CPA if the Trex material would be considered an impaired asset and if you can expense whatever the remaining value is all at once.

Municipal regulators will always look to the titled entity for impairment corrections because ultimately its the owner that has the most to gain/loss should conditions present dictate changes.In the situation story, and in most instances in the NYC marketplace, landlords will need to incorporate new language into their rental/lease contracts that prohibit and AirBnB use, and furthermore pass on the financial liability for any breach to the tenant.In no way shape or form should the temporary on demand tenancy have any liability for building or use infractions resulting from their rental. 

@Nick L. is correct about the valuation problem, although I'd say they are undervalued because they are impaired by non-conforming financing.

Retired and mobility impaired would have been a more accurate description.I don't think we'd take any legal action yet, but I will tell my sister to not enter the house if he isn't fully clothed.

I believe impaired self-confidence can adversely affect success not only in real estate investing but success in general.