One should NEVER purchase a property where the neighbor can unilaterally destroy the value of your property without consequences, if the facts are as you describe.

This was pretty cool for about 10mins, then we realized the house had been DESTROYED by termites!

I probably wont purchase another duplex unless I purchase a parcel of land, plat it and build them out myself or find a screaming off market deal on a higher end property.  

The ones that come on the market dont meet investor's criteria now, and the bank wont negotiate much because they are getting close to asking price.

Since this is a labor only contract, this needs to be a turn-key job, so I wont pay you until each job is done, you get paid after bath tub/shower/toilet are done, and after installing all laminate floor only.I'll be buying the materials, let's go to Home Depot and shop what you need.

The IRS wont give you back $1 for those 6 miles you spent 1 minute writing off.

I feel that even if I came up with 30% and a property with a 9 cap, I wont be able to find financing.

In other words so has no basis for it, that is why they stated " Buy as is" but they wont work with me.  

The downside is of course that pets can DESTROY your place.

Im not saying you cant accidentally get good tenants but I feel long term it wont be the best deal.