If you were looking to house hack multifamily with an FHA in the near future again, it will pose a problem as refinancing into a conventional will be more difficult and capital intensive.If the economy tanks would you be able to break even on decreased rent numbers or move out and rent the other unit? 

I've done it before and had no problem as GC if <$30K and using licensed trades.

Off hand it sounds like you have a problem as the use to fish in the pond was probably permissive. 

Yeah I had the same problem a few years ago when my credit took a big hit.

This wasn't a problem as that's our standard operating plan but something to keep in mind.As Bill said the business plan for a real estate investment is a simple document.

That is no problem as long as you keep up on your maintenance.

Michael W. my opinions only...1) You went out of your way to handle the initial problem as best you could, made it about the tenants and not just your building, and showed genuine concern for the people who rely on you for housing.

It's rather quirky, so I'm wondering if that may be contributing to the problem as well.

We dodged an expensive problem a little more than a year ago when an ESA on a multi-family brought to light two abandoned USTs (~1000 USG each), both of which likely still had residue oil in them {unless they had rusted through and leaked}.

It's in extremely rough condition, but could be a decent cash-flow property if done correctly.The problem as I see it that the property currently has 4300 in back taxes.The lady selling the property now is listed as the owner on the auditor's website, but says she never transfered the deed into her name and didn't knwo there was back taxes when she bought it, and didn't pay taxes on the property while she attempted to repair it.I'm not sure how this situation goes forward.