Hypothetically speaking, I get a property this way, and it's worth 50k, do I have instant equity that I could use for repairs? 

There are two Home Possible programs, the Home Possible Advantage with 3% down but this program only allows for 1 unit dwellings. 

Unless you are talking about an owner-occupied dwelling with 4 units or less, you cannot discriminate against a tenant with an ESA and you must allow that animal. 

They started allowing accessory dwelling units for owner occupants and have been trying to open up more areas for MF. 

So, while the dwelling coverage in a landlord insurance policy may help with the repair bills if a tenant inadvertently damages the unit while moving furniture, the costs of cleanup if you discover a disgruntled tenant spray-painted the walls may not be covered.”Do you know of a carrier that does cover he above?

Needless to say I was in shock, and instantly took them that much more seriously.

I found it on ARMLS ( I am a Realtor) and instantly knew that if I turned this unit that it could be a homerun.

A lot of ares zoned SFR are aloud 1 unit per lot BUT you can find some areas allows an ADU (Additional dwelling unit).

We still purchased in our name, but we got instant equity by buying a $75k house for $50k.

I came across Bigger Pockets and was instantly intrigued, not only by the way they explained real estate investing to a newbie, but by the challenge it can create creatively and mentally.