If you hold for 2 years then sell, I feel very strongly that you will do well. 

In some areas certain provisions MUST be included in a lease.  

I feel like this may be the best opportunity for house hackers as there will be some early adopters who capitalize on it because you can basically turn a single into a multi.

For legal, we can provide you a list of attorneys out there who do this and my recommendation is to interview them to see which one you feel works best for you.

Hi Shruti,That sounds like my type of REI investing, feel free to add me to your Network would love to talk shop some time or help in any way.

The overall LTV (including all 3 mortgages) will be key and your selling point will need to be that the 2nd mortgage ($8k) will burn off in 2.5 years (based on your surprise that it was even out there, I'd recommend that you follow up in 2.5 years and ensure that it's been satisified, so that it doesn't surprise you again in the future).Does the $8k grant vest over the 5 years? 

I would go a step further and say there is a Thought-Cancer in US Society today that people feel there not only entitled to affordability, but that it's focused to and for THERE "affordability".

I feel that should definitely get you the most interested parties seeing it and therefore obtain the highest and best offer terms. 

I feel like marking up repairs is paying twice.

I would much rather deal with someone like him who knows what they are doing and speaks the truth rather than someone who spews out a bunch of feel good crap just to get your money then disappears..