There seems to be a whole lot of confusion on this subject on the interwebs, and I'm looking for some experience on this.Philadelphia zoning (and apparently a handful of other cities) define a family as "not to include more than 3 persons unrelated by blood, marriage, or adoption".  

Not a huge cost, but a cost non-the-less.I think that the longer you hold this property, the thinner you'll find your actual margins to be. 

I was thinking of co-signing but with an FHA co-sign i heard that they have to be blood related and the only people i can think of to co-sign are my parents and they already have stress on them and i didn't want to burden them with something like this.

AI is not emotional (most murders and blood lust fall into this category). 

I know it will be a blood bath. 100k original asking price for a 4 bedroom where most 1 bedrooms have an ARV of 100-180.

CA's too rich for our blood. :-) We're looking farther afield.

I'm a lender here (hard money, commercial, and residential) The numbers still support growth although as an investor, the margins are getting thinner.

However, maximum financing, as described in HUD 4155.1 2.A.2, is available for borrowers related by blood, marriage, or law, such as spouses parents-children siblings stepchildren aunts-uncles, and nieces-nephews, or unrelated individuals who can document evidence of a longstanding, substantial family-type relationship not arising out of the loan transaction.

Unless he overdosed on lead there won't be blood everywhere. 

So now my question is....when he fails to follow through on anything anything at all...what happens to the masses he's excited to a frenzy literally foaming at the mouth ready to draw blood.