Yup, property condition, vintage, neighborhood, tenant base, property management are all very important considerations. 

Quote from @Yaroslav Shtogun: Good morning,Some updates, we did home inspection and the house is not good condition since it was built in 1950 and was not maintained well.

This would be a prohibited transaction since you're a disqualified party and anything you already own (your LLCs) is part of that. 

It's important to stay informed about developments in the areas you're considering, as well as any potential changes in regulations or economic conditions.

I was looking at nyc buildings website for basement dwelling.I saw the conditions but were confused by 3rd and last bullet (see below).

Have you considered specific local market conditions?

For flips, calculate the after-repair value (ARV) and subtract purchase, rehab, holding, and selling costs.Pay attention to location, rental demand, and the property’s condition.

Sellers who are in financial distress or dealing with a property in poor condition might be more open to this type of arrangement if it helps them get back on their feet.The key to making this work is transparency and clear communication.

@Saul Vargas, to piggyback off others, sourcing a traditional SFH rental that meets your underwriting criteria will be complex due to interest rates and market conditions.

It is also great to change small but specific terms and conditions due to it not being just one tenant anymore.