I have seen a number of cases locally where a party clearly did something illegal like this whether it be a landlord tenant or someone hiring a contractor.

My first start to finish was in Gastonia NC, then Burlington NC then this one in Lexington NC.

This is fine.

With the exception of building a trailer on the property (these are hard to finance), this sounds like a good plan AND if you are using it for your business AND your business pays more than 50% of the rent (if you have more than 1 tenant), then this is a more financeable property in the eyes of banks and credit unions as it would be consider a commercial "owner-occupied" property. 

I hope you don't like this family member.

He is hoping to get $200k but current value of the home is more like $160-$170.

I agree with this. 

I analyzed over 10 today and this was the best one with a positive, but unimpressive COC Return. 

Quote from @Axel Scaggs: Hi everyone, I’ve really enjoyed all the info I’ve found on this site!

Explain.I really like this question for discussion Venice, but one very major factor left off is at what risk exposure.