I do plan to hold it in an LLC, have good insurance and umbrella as well. 3) Older homes in PS - most of the homes in PS are built in the 40s-50s and for those that own them, do you constantly run into issues with major ticket items - plumbing, electrical, etc (things that are not visible to the naked eye).

House hacking is an awesome strategy, if the numbers keep going up you will have built equity and cash flow when you move out of there.

Also although I have learned all the foundations of REI here on BP it is a US focused site.

Foundations-  was some discussion on foundations settling.  

They often don't do what I'd call "the best" inspections, if you know what I mean, but this is especially disconcerting because the home sits on a slab foundation.

Also, if the property appraises for 900k, would the 100k built in equity satisfy the equity requirement or does it have to be new money? 

I tell all of my clients to avoid buying occupied properties unless it was built in the last 25 years.

What we do at the bank and with most banks is either get your builder approved or we can provide you a list of the already approved builders that have built successfully under the program.If you trying to get started the first thing is get your Pre-approval set up and start the processing.

Since then we've designed and built several homes in the coastal Orange County Area. 

Purchase price: $50,000,000 Cash invested: $7,500,000Portfolio of multifamily properties that my partner and I built in San Diego County.