Some lenders have a no seasoning requirement meaning they just want the source of the down payment and closing costs. 

I seem to recall there was stuff like a 24 hour on site manager required at all complexes (crazy and would put most small folks out of business) and a no income source rule that would force all but the higher end rentals into Section 8 whether they even understood it or were aiming for it (classic big penalty, stigma and lawsuit for violations).....I mentioned the small time folks may not all be interested in Section 8 or set up to participate and handle that market.Oddly, the assembly's goal was more housing, better managed housing, more affordable housing.

The partiers were not residents, it turned out one adult tenant had been marketing "pool parties" to non-residents at $5 a head.We have a "no parties" clause in our rental agreement, and also do not allow residents to run businesses on the property. 

It's pretty much a no brainer to me if you can easily get the lower unit re-rented.

We've asked about owner financing and that was a no go. 

Thank you Ned, great advice..I do realize that it is hard work, and I kind of figured that there are always costs even in a no money down situation.

For me it was a no brainer.

Even if you have a "no pets" policy, have this clause in your lease to cover ESA.On an application, technically an ESA is not a pet, so if you asked how many pets, they could say 0 truthfully.

I realized that is a tall ask.Mike, The plumbing and HVAC look good.Jason,Yes, you are correct in this deal probably can't work and the not enough margin.I just was looking to see if a no (or little money down deal) would be worth the trouble.The tenant want to stay 1-2 years and have take very good care of the property.I am on to the next deal.I appreciate everyone's feedback.Thank you,Ginger

I wanted to add that we have accepted an ESA at a property that was a no animal property.