You'll have to furnish and stage it appropriately to make the listing stand out.

Sometimes they still have the garage door and drywalled the inside... meaning that they did not do a foundation on the garage door line : they did not use a deputy inspector, they did not use the appropriate hold downs (metals) for structural integrity, they did not use the right calculations for framing (ie rafters for ceilings ) that are often changed in a garage conversion... did not use proper headers for windows and doors... etc etc I have been faced with these a lot when representing the buyer and I would : 1.

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

Proactive, I do not have to ask them for information, they run annual rent analyses to increase rent appropriately, and they get after repairs.

Building right next to flammable vegetation on remote hillsides can be banned as too dangerous.The land can be seized via eminent domain and values assigned later, while planning for better, more appropriate (wildfire-wise) communities is underway.

It would be nice to see some actual concrete advice from industry experts on what options people may have if this investment was not handled appropriately (which seems to be the case) vs just shaming people saying "you're stupid for investing in this, live and learn."  

Since you will be guaranteeing the loans, make sure that line item is funded appropriately. 

For anyone interested, here's what happened at each bank:1) The credit union turned me down because 1) the LLC isn't local, 2) they had no way to enter an IRA as the owner of the account in their system, and 3) they were concerned about not being able to control my appropriate use of the funds as manager. 2) Wells Fargo - I went to the local branch who didn't have availability to meet with me and sent me to the next town over 40 minutes away for an appointment with a "specialist" who could help me. 

Every rental housing unit shall contain at least one bedroom or living/sleeping room of appropriate size for each two (2) persons.

@Nate Hammond  general rule in most mid western is not all is to be north of 800 in rent and buy top of the market not the bottom... cash flow will generally be more consistent over time and you will have the gross revenue to pay for cap ex which hits every home... bottom end of the market is really more appropriate for those that live there and self manage IE they don't have to pay mangers and they do rehab and make readies at cost.. those two items will be the difference in cash flow and cash neutral or negative is my experience of owning a couple hundred of these..