Again, the house hack is hard to argue against when the rental part covers most or all of your mortgage.

Cavity free even.

Wraparound mortgage or all-inclusive trust deed (AITD)Property is located in Los AngelesSales price 3,800,000Down payment 950KSeller will give Buyer AITD for 2,850,000Current loan 2MSeller carry 850K Interest only 5% No prepayment penaltyBalloon in 24 months

There is no reason they couldn't pay part or all of the $1250 from their commissions.

As an aside, RPM who is mentioned in the thread above does not have contractors for Detroit or all cities. 

Contractors are not typically good at design or all the little details typically done by the owner or project manager.It is very unique to find someone who is both a contractor and investor who understands the investment dollar and race against time plus the design abilities.

They will handle some or all of procurement depending on the company.  

If the leases are month to month agreements then it would be incredibly easy to not renew their leases (one-by-one like @Sam Shueh recommended or all at the same time), rehab the units, and get them leased at the higher market rents. 

I was shocked to learn that the tax implications of flipping property in New Jersey could make it cost prohibitive (eat of most or all of the profit).

It occurred to me that in markets like these, finding off-market deals or all-cash only properties was the way to go, eliminating those "investors" that pay way too much for properties and only have access to traditional financing.