Notice to the buyer and appropriate language in the closing docs could cover most of the liability.You will want to use an RMLO, inspection, and title company.

Insurance would cover legal costs.  

Unpaid taxes or municipal bills are coverred by the title insurance. 

Partner Driven financed the Millgate Drive deal using its own capital, covering the $115,000 purchase price and $33,396 in renovation costs.

I’m currently house hacking and mortgage is covered and then some .

You could buy a $225K home for example 3.5% down is $7,875.00 but there is closing costs which I mentioned seller credit or use the rest of your $6K.You could also use a DPA down payment assistance which covers 100% of the mortgage and in some cases depending on the DPA closing costs as well.   

But if the utilities are on a master meter, the landlord has to cover those costs.

The numbers also work for the this to be a long term tenant in the down stairs unit to cover part of the mortgage. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

No one will cover position 2, so I'll use Gap money to fill in the Gap.