Couple of rules to implement: no pets, no significant others staying over more than a weekend's time, no mini fridges or heaters.

I get the point of if you can invest your cash for a greater return then its cheaper to use OPM to rehab houses and obviously if you rehab more than you have cash to support OPM is the only way to go.In my area using OPM usually ends up costing about 20% after figuring in the points, fees and interest which is pretty normal from what I can see, at least for those that dont have a good long term relationship with a lender that gives them better rates.

When they try too hard, impose too many rules, it might be good for owner occupants, but really bad news for the condo landlords.

I would rule that out first, then look at other options.

Just going by the 50% rule, you are hardly breaking even and probably losing money.The garage apartment: is it legal with a CoO?

What are the rules you typically abide by with buying a place with current renters?

I've done over 6000 BPOs (HUD houses which are then checked out against an appraisal, and if more than 10% off I had to justify and support my numbers), and have helped other investors, and retail homebuyers and sellers.

Personally, I like the thought that all my investments would at least attain the "1% Rule" - which this one DOESN'T.

But there is no hard and fast rule about how long it needs to be your primary residence.

Most of the time setting up RUBS is the best way to get that cost passed along but you have to make sure the market will support that.