Mind your own business - the house - send these people packing and give it to your insurance company.  

Mind you they'd probably not do it anyway.

Keep in mind that many of these cheap homes are selling for less than a third of their insurance replacement value, which really means that the land has negative value - let that sink in.Most buyers who can actually qualify for a mortgage will get a PA for $200-300k and desperately want to upgrade their life.

This used to be a non-issue for FHA buyers up until 10 years ago when HUD stop allowing buyers to use their appraisalsKeep in mind your agent is not dealing with HUD directly. 

In our minds, we come out ahead as we get exatly what we've been looking for.

Keep in mind that rates does not fully translate everything.

So with all of this in mind, I see no point to your original post.And are pointing this out because your channel has 85,000 subscribers?

Would you mind sharing any details about your townhouse?

Claiming a stair is defective is mind blowing, but I'm glad it didn't cost you very much.

@Kyle LumanKeep in mind everyone's situation is different and while one investor in the short term is wanting less cash flow for tax reasons (presumably) your situation it might not make sense to break even or lose money.