Rents are $1500K. 3 bed, 2 bath SFH.The way we're going to structure it is I will obtain financing for the acquisition plus $5K of the rehab, and my partner will take back a second lien at close and finance the other $40K of the rehab.

My fiancee and I will purchase a 4-5 bed house to house-hack (renting the rest of the house by-the-room), purchasing with a 3-5% down owner-occupied loan.

The building has a basic business license for a Bed and Breakfast. 

You know who your getting in bed with.

@Mark Gallagher It's a 3 bed 1 bath, it is located in Baltimore City, this was actually a home path property that in hindsight I actually probably paid to much for.

_Single Family 3 beds/2bathsLevel of repairs desired & why?

a 3 bed house can get a way with 1 bath....a 4 bed house is for a family, and you need a 2nd full bath most likely...4.

In other words is the seller or management company "cooking the books".Example.1.Taking money from another account and making the tenants look like they are paying on time and in full to show 100% occupancy.2.Giving rent credits like first 1/2 month off apartment rent,or full month rent off,or no security deposit,pet deposit,etc. to inflate occupancy.3.Retail leased properties where market rent was 18sq ft but the landlord is selling because lease is coming up for renewal and if tenant doesn't get 12sq ft they will upgrade to the new grocery anchored shopping center that used to be 22 sq ft and is now 18. 4.Watch out for pre-foreclosure volume and foreclosure volume for your area.What I mean is when a buyer purchases a distressed property for below market value they can then rent at a lower basis and still make the same or better profit than you.I have seen this first hand.I have seen rents for apartments 2 bed be 650 a month.Then a few foreclosures happen that buyers purchase cheap for cash.They come on the market and rent for 550 a month.The buyers rent low to get the best tenants to choose from and build occupancy quick.Then over time they will up the rents.What this does is put tremendous pressure on landlords already hurting that have high debt service loans.Then those get foreclosed on and a domino effect happens until the market settles.So my main point is don't count on current rent or future rent.I look at where the market is going and correcting to and buy really low so you have room in case the worst happens.This will exclude many properties.If you make great income form other than real estate and just want a tax shelter with pay down etc. then you might look at it differently.

Those that come to mind immediately are the liability in transportation (house falls off and kills 20 people), installation (house does not sit well on new foundation), sales (new buyers squirm at fact that house was previously on a truck bed), title (I'm sorry... the house is WHERE now???)

The scratch areas are where you'd expect: around the couch/bed/furniture footing areas.