@Matt Kitchen definitely a question for your insurance people.

They are basically renting an apartment with a kitchen and bathroom, but I am telling them they are not allowed to live there.

So, the seller was NOT AT ALL equipped to deal with the difficult tenant situation and the agent wasn't prepared to put a lot of effort into a troublesome deal that was of low value.

The place needs a little bit of renovation (kitchen, floor in all rooms, bathrooms).

Good afternoon and thanks for reading,I have the opportunity to purchase my neighbor’s house (4 bed/4bath/2 kitchens on 3.28 acres of timberland adjacent to prime BLM hunting grounds) in Walton, OR (about 40 miles outside of Eugene) and I need advice on securing capital for the rehab budget of approximately $80k-120k.Purchase price offered to me is $300k with a $50k downpayment and 5% interest with monthly payments and a 1-5 year term. 

The duplex needs about $25K in work (update flooring, update the kitchen, update the bathrooms, paint the walls). 

Est ARV is 100-120K (good school district and solid B neighborhood).I haven't walked it yet (I will next week), but according to seller, it just needs paint, flooring throughout, new kitchen countertops (possibly cabinets too).

Light renovation of the kitchen and should be able to see increase of rent of $250-$300 month.

I forgot about this post... fast forward 5 years and I have converted this to a 4-plex by adding a kitchen and bathroom and a bathroom to one of the other units. 

Some companies give a "Full Transferable Warranty" but then hammer your with fees on labor or some other way to get more $4. pic below is of the severe fdn. settling in the kitchen.   5.