Seller was behind on pay HOA payments and in risk for losing the property.

There would be a lease agreement, just no monthly rent payments.

I am thinking about taking out 5 to 10% to fund a down payment on my next live in multifamily house hack.

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 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Together, we have over $200K (mostly in stock market investments), and our parents may help with the down payment.

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 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

If they are up for renewal and you elect to non renew them you must stop accepting funds from the occupants after the lease expires (accepting rent after the lease expires may make it appear you have a tenancy at will agreement). 

There are down payment programs for duplexes, i have not searched or tried to do a 3-4 unit property. 

I’m a fan of harvesting the equity to buy more and more cash flowing properties with zero out of pocket cash for down payments.

The mortgage payment is $1,000 on each house, so you earn $500 per house or $2,000 monthly.