Then you can expect to get it rented.  

Prices a few years ago were based on expectations of (in addition to interest rates staying low): - Then current operating cost assumptions (like insurance cost expectations being flat)- A seeming disregard for record levels of new inventory / supply hitting the market- Extremely high inbound migration expectations which are likely to not be met, due to both natural disasters and the boomerang effect when people from California or the Northeast move to the American South and hate every minute of the humidity, the large and relentless swarm of insects, and the occasional hurricane. 

If you walked into a bank, your pre-approval would likely never qualify for a house hack duplex.Did they count 75% of the expected rent towards your DTI? 

If you expect to get every penny out of every deal you are going to be disappointed.

Renovations can cost more than you expect, add 10% to your overall number.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

The seller and their agent hopefully did a good job communicating with that tenant to set expectations.

@Jose Morales Is there a reasonable expectation backed by fundamentals suggesting these properties valued at $25K will appreciate?

Curious how our self-managed 3-unit STR/MTR performs with industry expectations.

How much do you expect to invest?