Look at Listed properties, open houses, for sale by owner (FSBO), wholesalers deals, any on site auctions you can find, and look at as many deals other investors own that they are willing to show you. 

What condition is the house in, what is the rent, how many bedrooms and bathrooms, how is the school system, how safe is the neighborhood, etc. 

All of  their loans are first position mortgages with personal guarantee meaning if foreclosure does not meet the debt requirement, FTF can go after the borrower's personal assets.

or they just care about the house being "liveable"? 

We are going to be converting our purchase into a halfway house/ sober living.  

Personal Service Activity Test: The activity is a personal service activity, and the individual materially participated in the activity for any three taxable years (whether or not consecutive) preceding the taxable year.7.

Have you considered house hacking a 4 plex?

It's a 3 bedroom, 2 bath, 1105 sf house in a B neighborhood.Purchase price: $322k (Originally, my partner wanted to flip it with me, but I persuaded him to sell it to me.

Is investing in your home market possible to house hack? 

Paid cash for the house.