Another question is lender's reaction to this issue.

Rabies shots is a ridicules knee jerk reaction that boarders on insanity.

Looking for reactions, thoughts, direction.

@Drew Denham Well, it is his problem, but it doesn't sound like you can rely on him to contribute any $$, given his reaction.

If your area is a really hot rental market then you maybe shouldn't worry too much about their reaction, unless it suits you better to have the stable income in the beginning after paying a down payment (whatever your situation may be).

@Bill S. that was my first reaction too!

What will your reaction be to a resident that cannot pay rent? 

Even if there were no issues at all I would have still posted here to see some others reaction to the deal.Now to give a shred of life to this dead thread I'm going to ask some opinions on the numbers.

My guy reaction is that that makes sense for a flip, but less so for a buy and hold where maybe a monthly PM-like fee is more appropriate.

But their kid had a reaction to something, has an oxygen machine now, and they attribute it to the carpet.