However, as long as you aren't breaking the cardinal rule of overspending on your purchase, you "should" be fine.

Most times when you buy turnkey you are buying with negative equity because you're buying in areas where investors are taking over predominantly owner occupied areas for the 1% rule.

@Anand Sankhe I normally use a simple rule of thumb for this type of decision.

Also from my experience in SLC you the home owner are still responsible for the water and sewage (this may need to be included on your rents) I'm not sure what the rules are up there in cache county but keep that in mind as well.Currently being a landlord there are many things to keep in mind when investing in multifamily please feel free to reach out to me if you have additional questions or concerns.

If the potential tenants don't make that, they don't get the place.Another example is to have a clearly defined rule for previous evictions.I think if you clearly define your standards on these issues you will avoid tricky situations like this.Also, definitely do not put someone on the lease who isn't living there.Good luck!

I'm well aware of the 1% and the 2% rules (these numbers provide a 1.3% property), but just worry that there's something I may leave out and get burned on. 

You will want to work with a CPA who is familiar with the debt-financed distribution rules and how to minimize its impact.

The material will get you started but often times you will run in to issues - 50% rule, 1-2% rule and other so-called metrics that are used by American investors when looking to residential properties. 

Typical IRS rules are you can get a loan within a few percentage points of prime for the lessor of half the balance or $50K. 

I work for our family’s fourth generation home building company on the sales side building custom homes on customers’ land all over Texas.