When there's tenants already occupying the property, there's often times different leases that were signed among the tenants.Additionally, renting by room usually sees higher tenant turnover which in turn causes more work for the PM.Other challenges to consider:- Disputes/conflicts among tenants (different personalities if a tenant doesn't know the others prior)- Occupancy limits- Splitting utilities (what if someone uses more water?)

Challenges?

@Philip Jones we've helped our clients do over a hundred.As some of the lenders posting have pointed out, the challenges are:1) Property value and corresponding loan size2) Appraisals have much better comparables than 5 years ago, but may still be an issue.3) Property condition can be an issue via the appraisal4) Ownership seasoning - most lenders looking for 6+ months or incredible documentation for cost of improvements made.5) Most DSR lenders require professional property management.Always try a small local bank or credit union, but most will expect you to transfer your business bank accounts over to them. 

They’ll often have leads on deals before they go public. https://www.biggerpockets.com/business/finder/agentsWith your experience in renovations, you may be able to find value even in these challenging properties.

Challenges?

Next in this environment you may be challenged to get $10k rent on $1.3m property.  

The holiday season is almost here, and for many real estate investors, it brings both unique opportunities and potential challenges.

As per my original post, I think the parents are generally well meaning and just want to help their children.

What are some of the challenges an owner would have accepting this type of deal.  

@Rene Hosman want to connect with Chris and Jonathan and see if they're up for the moderator challenge?