That is typically a non-motivated greedy seller.

Public sewer does not need inspection obviously.

. :)You are correct about the 2 of 5 rule, but there is another one: non-qualified use.

You'd be far better off to see if your county has public access to mortgages in arrears notices notices online somewhere, and pursue the preforclosure route, as best as I can tell.

In addition, they are either 100% occupied and receiving rent or 100% vacant and a big expense, where a duplex can be 50% occupied and when you have turn over or a non-paying tenant you still have some rent coming in.   

And like the bank, you also have the right to take the house back in the event of non-payment.

If it hasn't been mentioned previously, one area that I often advise out-of-state investors is to be aware of the property tax rate for non-homestead, and factoring in the higher tax rate when running your numbers.

Cash out refinances are not taxable events in themselves, but you wouldn't be able to go to 80% LTV on a MFR non-owner occupied cash out. 

Her response to our notice of non renewal is that we will have to pay the homeowners association to remove the gate as she can not move out all of her stuff through the front door.  

Please, PM me if you have any further questions, CBRE in currently the #1 non-bank originator of multifamily financing in the US.