They want the problem fixed, the tenant to be happy and you to be happy / still paying them.Here is the CO of warrant of habitability -- https://www.colorado.gov/pacific/sites/default/fil...

But if you plan on holding for 2-3 years and are unsure how things are going to pan out, then avoid it. 

I guess I'm supposed to enrich him and the seller buying a half a million dollar property without even looking inside.Inspection panned out OK so far, but I won't have the full inspection report until tomorrow morning.Bail while I'm still in the inspection period or move forward?

I have called the state\epa and discussed what is needed for operation of treament plant, confirmed the certification and validated all but rent roll.Barring rents panning out and with the possibility of rehabbing and renting the existing vacant 4 units this appears like it will cash flow well and  have some significant upside with 10 more lots to be filled potentially. 

If house hacking doesn't pan out, we are also looking at buying a small multi-family (again 2-4 units) in several areas, including Sacramento, CA; Reno, NV; Everett, WA; Tacoma, WA. 

Anytime I force anything it doesn’t pan out good.

Go ahead and buy anyway and say "I told you so" when it all pans out?!

To me personally 1% rule is not worth getting out of bed for and your not even getting that so I’m not sure how this will pan out .

Also wanted to see if any locals ever used Sun Pacific Mortgage as hard money lenders?  

I'm going to be a bit of a contrarian to the above posters, but let me first qualify my post by stating that your market will determine what you should do.We frequently install en-suite laundry in our units - in fact, we have removed common coin-op laundry in most buildings of 6-units or less in favour of en-suite laundry - for the following reasons:electricity and, in most cases, hot water costs are transferred to the tenant;where water is sub-metered, water costs are transferred to the tenant;high-efficency residential laundry machines are about half the capital costs of commercial coin-operated machines;we can command $30 - $50/month in additional rent with en-suite laundry;by installing our own machines, we know they are installed property, with catch/drain pans and {going forward} leak detect shutoffs; andwith en-suite laundry vandalism of laundry machines has been non-existant ... and if a machine is damaged, we know who is responsible.We have a good rapport with a couple of local appliance suppliers and get called whenever they have "dinged and scratched" units to unload ... a small, cosmetic dent in the side of a washer - which will never be seen when it is installed in a laundry closet - can be worth a 40 - 50% discount.