We only looked into the kitchen window n didnt see the train wreck till it was paid for.

Your friend can do a short sale on it, but it is still going to wreck his credit.

You're (presumably) not going to wreck your own place nor will you have to evict yourself.

Not to mention if you the individual is sued for massive amounts (say terrible car wreck your at fault) your rentals are fair game, LLC, INC or not.

Hi everyone, I am looking to house hack and want to buy with an FHA loan but the house I can afford is a wreck!!!

No fences, roofs, trees to come crashing down every year almost killing people or wrecking cars.

The problem with people commuting is the roads are so slippery in winter, and so many wrecks. 

It needed updating but I drove by it looked secured and not a wreck so why didn't the listing agent just take the house for 35 or offer 32 and do the flip themselves??

I think I can add to this discussion in a way that is not inflammatory to either side of this "debate".1) There are many flippers out there that love the aspect of flipping where they are transforming a wreck of a house into a nice home for someone and they love getting paid to do so.

If you can't get the loan then buy and hold is probably not where you should start.If you go secondary market the costs are going to wreck your ROI unless you borrow from a friend or relative, which is ripe for trouble if things dont go right (ask me how I know this).I'd hate to discourage anyone from getting started, but you do need to have an investment strategy that fits your resources.