However, the heated and gross square footage and number of rooms on the appraiser's website matches the information in the MLS ad, so I assume the county at least knows about this conversion, although I can find no proof that it was ever permitted.Has anyone here ever had any electrical or safety issues with tenants after buying one of these conversions?

Don's list is quite similar to his.The only thing I have to expand on is before you start demo/trash-out, complete any critical safety issues that may exist before you break out the crowbars.

You should put your own safety and your brother's safety first.

When a property has been vacant for some time (the utility company knows this from their records), the utility company can consider it a safety hazard to turn on the utility service without some inspection and repairs being performed first.And repairs are probably something you wouldn't want to do.Also to add to his item #2, some utility companies either want to see proof of ownership of some sort, or a lease signed by a tenant and the known owner, to turn on utilities.

For the safety nets, which I thank Jon again for putting in the fore of the conversation, I have the cash on hand to pay off the mortgage on our joint property where my grandmother lives should the need ever arise.

Items 4, electrical issues with ungrounded wires and fire and safety hazard issues...need to be brought up to code before close of escrow.

A safety net is fine in a wealthy society.

I've never believed in the percentage they stun your income since there are too many variables as to what your actual expenses are, your job security, your age, your safety net, your reserves, etc. etc. etc.

He includes a classification of the deficiency stating whether it is a Maintenance issue, a Repair issue, or a Safety issue.

So guess there is just a safety factor for me because I know what the tenant will be like since I have rented in these areas myself.Some of the worst nightmare stories I've heard form long term investors I know (that favor SFR's now) are from 4-plex's they owned in bad parts of San Bernardino CA on blocks with mostly apartments.