The homes are priced at 5-10% below the median home value in their broader neighborhood and appear to be selling close to fair market value based on my comps analysis.I wouldn't have tons of equity going in, I'd pay considerably more for this "quality" than if I just bought from their core inventory, and my returns on paper (using all of my diligence and conservative assumptions) look way lower than the pro formas.But given that I do plan to hold for 15-20 years minimum and don't intend to get much more hands-on than periodic market tours and some spreadsheet jockeying, I think there may still be a fit here.

Allow me a moment to pull the argument together, because its broader than just the 15-day owner occ-only FNMA and FHLMC sales that bother me.

I bought my zip code report and the broader market report from AirDNA.

The 203k loan allows you to MAKE a deal out of a broader range of properties if you'll deploy patience on it.

This seems to be part of her broader strategy, as she is liquidating a few of her rentals, as well as her vacation house.

I sent some M&A people to you a few weeks ago to speak with as well that can give you a broader perspective on the industry and what they're seeing.  

Just a little broader comment on the topic....I've seen quite a few new construction homes that are 1/2 of a duplex.

Depending on how you are using the cashflow from the properties, you may want to be less concentrated by spreading your investments over more properties and geographies giving you a broader exposure and limiting the chances of rent interruptions placing strain on cashflow giving spillover effects to however that cashflow is being utilized.Considering the external factors which we'll never be able to control - macro economic trends, regulatory, taxation, etc vs the internal factors - budgeting for r&m, capex, ensuring quality tenants, etc - my personal philosophy is to be more diversified through lower value assets which have less marginal impact when one gets rent interrupted rather than concentrate on assets with higher valuations but give potentially more external factor risk.

A commercial policy is great for multiple properties title to the same entity or with entities that have 51% or greater common ownership, and the coverage available through commercial insurance may be broader than on a personal policy. 

Lower your rent a bit to capture a broader part of the market is my recommendation.