The strict requirements consist of a credit score minimum of 620, 1yr reserve of mortgage payments, and property must be in habitable condition.

In return, you get 1/3 of the equity in the property and inhabit one of the units.

All 1-4 properties that will be inhabited by the owner can go for 3.5% down with FHA.

You can't collect rent for an inhabitable property, but your mortgage payment is still due.

Soon as I bailed he sent me 2 SFH to house hack. 1 was only $130k and seemed to be the cheapest thing listed in 10 mile radius of downtown in habitable condition.

They will condemn the unit because it is inhabitable.

So I don’t “technically” have proof of their pet inhabitants for this latest lease.A few months ago I found out “B” has a cat too but it lives inside thus I’ve never realized this (I am not local and apparently do a poor job of property mgmt. since I’m too busy fixing these old homes rather than worrying about every detail of the rules…)The community rules indicate that no cats or dogs are permitted except those 2 homes (A and B) which are grandfathered with “one small dog each”.

If a person who appears to be a squatter, as in this instance seems to be, is openly inhabiting a property, they can file to acquire the property legally.

Word of caution: most lenders won't provide traditional financing to properties that are inhabitable.

Say for instance, you purchase a multi that needs a full gut job, you may very well intend to move into the property but its inhabitable until the rehab occurs.