Thanks,PeterPeter,Not that I'm in the habit of throwing business away, but if you're on decent terms with your Dad's ex, this will work. 

When running the numbers on this property it is listed as a 2/1 with over 1,100 square feet so i know we can create an other bedroom during the rehab converting this into a 3/1 the comps i have ran actually valued this home at around 150k-160k (two property's sold at 160k in the last 6 months)  i was being ultra conservative on the 135k ARV running this report.So 15k return is my worse case. i am wanting to make it a habit to be conservative with my numbers.

Many times conventional financing is not possible as the buildings are not habitable.  

Acts of nature and negligence are what stand between the foundation of your investment(a habitable living space) and your cash flow(RENT!)

@Mark Burlison is it habitable or are you looking for something short term w/ construction money to rehab and sell/refinance?

If the tenant has a habit of repeatedly flushing wipes down the toilet, they need to pay for the plumber and then find a new place to live.

Or a habitational commercial policy?

It was deemed not habitable by every lender I approached (even though it did have a bathroom and kitchen).

It’s going to be hard to overcome that in court, in my opinion.Anyway, since you asked about your rights with regard to withholding rent, in your state (like most) there is something called the “implied warranty of habitability”.

@Isaac Bazek Atomic Habits, the E Myth Revisited, Rich Dad Poor Dad, Never Split the Difference, The Seven Habits of Highly Effective People, and How to Win Friends and Influence People.