The market conditions in Crocker, MO, combined with the property's solid structure, made it an ideal candidate for a quick, profitable renovation.

It's the visual thing for some people mostly, with such small wall space having it right there in your face isn't ideal. when at all possible, every flip will just get duct work and standard air conditioning. 

Thinner margins are a reflection of overall market conditions so you need to dig deep into the assumptions to understand the risk being taken to deliver those numbers.

Going to the property is also a great way to keep tabs on the condition of the property.

The problem is there isn't enough information and everyone uses different metrics to determine a "deal."1) What's the condition?

I was planning to do that and then return their security deposit if the house is in good condition.

.- Condition: The house is completely renovated.

I would like to believe that the property was bought at a discount due to the condition but you never know what motivations people have.

I'd also have money held back at closing (a significant sum of money) that they do not get unless they are out within the 30 days (or whatever you agree to-do whatever you need to have them treated as a short term tenant) and leave the place clean and in good condition (ie same or better than when you viewed it).

Here are the Fannie Mae guidelines for legally non-conforming properties:If the Property's characteristics are legally non-conforming, you must:ensure the Borrower executes the Modifications to Multifamily Loan and Security Agreement (Legal Non-Conforming Status) (Form 6275);confirm whether, if fully or partially destroyed, the Property's Improvements can be fully rebuilt to the pre-casualty condition per current laws, zoning requirements, and building codes; and if the Property’s Improvements cannot be fully rebuilt to the pre-casualty condition, evaluate if the as-rebuilt Property will support the Mortgage Loan at the current Tier, and document your analysis in the Transaction Approval Memo.To assess the Borrower's ability to rebuild Improvements on a non-conforming Property to a level that will support the Mortgage Loan at the current Tier, you should consider: conducting a threshold analysis to determine the resulting actual amortizing DSCR if the reconstructed Improvements cannot be rebuilt as-is per current law; the likelihood of a casualty event (e.g., wind, earthquake, fire, flood, mine subsidence, etc.); the percentage of damage to the Improvements at which the Property’s jurisdiction will require the Property be rebuilt to current zoning and land use requirements (i.e., the destruction threshold); which Property characteristics the destruction threshold percentage applies to, such as market value, assessed value, replacement cost, or unit count; for Properties with multiple buildings, if the destruction threshold percentage applies to each building, or all buildings as a whole; the replacement cost to rebuild per current requirements for zoning, and land use; the Property’s continued marketability, and economic viability; the amount and type of Borrower-maintained insurance coverage required per Part II, Chapter 5: Property and Liability Insurance, Section 501.02C: Ordinance or Law Insurance; insurance loss proceeds payout, compared to increased rebuilding costs, including from building code changes, Americans with Disabilities Act compliance, and the municipality's local zoning requirements (e.g., green compliance for new buildings, etc.); the sufficiency of estimated insurance proceeds from ordinance or law insurance and other coverages to repay the Mortgage Loan in the event of partial or full casualty, or condemnation; and for a Tier 3 or Tier 4 Mortgage Loan, if requiring execution of the Limited Payment Guaranty (Form 6020.LPG) would mitigate the risk of the as-rebuilt Property not supporting a Tier 2 Mortgage Loan.