@Tobi Isaacs this would be better answered by other investors in your market. 

With proactive communication, they will demonstrate they are in control, and you can rest easy.Start by going to www.narpm.org to search their directory of managers.

Originally posted by @Thomas S.

If the inspection reveals a bigger problem, either you can try to keep the deal alive by offering a seller credit, which could motivate the buyer to move forward, or the buyer walks away. 

Personally, I'm waiting for the lawsuit by a seller against his own broker for refusing to vet a potential buyer and then show to a qualified buyer.

Many investors have used this strategy successfully, whether by renting out extra rooms, a basement unit, or a duplex/triplex.

Each has their own tax implications.There are some alternative methods of calculating how much of the distribution and therefore the interest expense falls under this category, but the bottom line is that it is very important to keep track of. 

A quick look at Craigslist in Austin shows 4400+ listings by owner.

Most do not purchase properties, and that is by design. 

Learn learn learn and always take action