Specifically (for those who asked):-An agent stated a property could get conventional financing when he knew it had previously fallen out of contract because the buyer was denied conventional financing because the property was inhabitable.

Last Friday I had a fire in one of my condos.  10 out of the 12 units are inhabitable.  

Excluded from these requirements are sales of property with 1-4 dwelling units that has never been inhabited, sales exempt from real estate transfer fee, and sales by certain court-appointed fiduciaries (for example, personal representatives who have never occupied the Property).

And is inhabitable.

So when I listed both units on Craigslist I had somewhere between 30 to 40 showings and through the tenant screening company I used to perform the background check, the employment history, the credit check and so on, I was able to hand pick based on the evidence before me who I'd choose to inhabit the units.  

A-properties are the most recently constructed units, those that contain top amenities, require low maintenance, and are inhabited by young white-collar workers.

If you have a 1980's split level that just needs a $20k "refresh" but is otherwise totally inhabitable, a bank can lend on that assuming it will be a primary residence or you have enough money down to qualify for an investment loan (30% typically). 

I found a property in Johnson county, Texas (south of DFW) that has 2 inhabitable structures on 1 lot.  

I just see so many problems with it.A landlord in California generally cannot get out of their legal obligation to maintain a residential property in habitable condition, even if the tenant were to waive that obligation in the lease. 

Based on what I've observed, most rentals this close to university are inhabited by multiple people, many of them students.