The Bank CAN NOT alter the contract.

If you are beginning to doubt your assumptions or analysis - which is only natural after being to the alter 20-times - then post a deal or two here and ask for another perspective on the deal and your analysis of it.In the past we have managed to secure properties even when there were larger offers behind us.

Cancellation of debt income is not limited to just mortgages - it extends to any debts where there is an agreed upon liability between two parties where the obligation or responsibility to pay is altered at the benefit of the responsible party. 

@John McCormack This particular home isn't a protected historic home, which is one of the things that makes it a good option in my opinion because any alterations can be made to it without all the approval process.

I'll be buying my first rental in the next 2-4 months, spending the time between now and then reading/researching as much as possible and getting some work out of the way.I figure my wife and I can buy 200-300k of rental property a year using the 20-25% down rule using excess income and not having to alter our life style and not over extending ourselves.  

We do not allow our tenants to alter our properties or do their own handyman work.

Seeing as this one came so cheaply, I've altered my plan. 

I know a few houses have some exceptions where the outside can't be altered to keep the houses character.The 3 biggest hurdles I see with this house is water leaks, plumbing needing updating and electrical needing updating.  

The responsibility for ADA upgrades usually follows how the lease is written and has the tenant done tenant improvements that alter the accessibility i.e. counter tops, bathroom vanities, doors, dining room walkways. 

I am unaware of any piercing case where there was not an alter ego problem.