Here's the picture:Our church, Gilbert SDA church in the Phoenix area, is looking at a house to buy in a county island that we will transform into our church home over time.

Anecdotal evidence is welcome, but if you could point me to any relevant sources it would be much appreciated as well.Low-value SFR properties ("ghettos") tend to surround major universities.

I would consider the areas they live in very nice in perspective to the majority of other areas in Western Hamilton County.

I applied for a loan with a local bank after going through numerous channels with the major bans and finding out that was not an option. 

As a rental, the numbers are a little tight:Price: 210k(haven’t negotiated yet but after first conversation I think she wouldn’t go much lower).ARV: 230k2/2 on both sidesNo major repairsRents : 1k each side currently.

Many commercial loans have clauses that state that the bank has final approval rights for any major lease in the space (the square footage is usually stated in these clauses). 

Doing major rehab/conversion work to the house would not make the numbers work for this deal (if they did, I'd extend the second floor to fit a bathroom). 

Hello all, I am making my first home purchase (a bit of a fixer upper) and would like to include a clause in the escrow agreement that allows me to back out (while recovering my earnest money) if the inspection finds any major (as in, cuts the projected home value in half and makes the deal non-viable to me) problems. 

As @Michael Seeker has mentioned, you should not have any major issues with selling these off one-by-one. 

The 2 other partners would be putting the majority of the capital down and I would be the general manager.