She did move in two cats during her tenancy (with my permission after the fact), and the house was left in fairly good condition when she moved out:Most holes were patched (though some in the basement were missed).It was moderately clean but needed extra cleaning due to cat hair in the carpets.Minor issues included:A missing doorbell.Missing shower hardware.One of the window blinds needed replacement.A truck bed full of items left in the shed that I had to haul away.Since I was in a pinch between Christmas and New Year’s, I hired professional cleaners for a quick turnaround.

Assumed nothing could possibly go wrong in the next 5 years what you want when you look at an investment property is to know the current rental amounts, specific expense items, and conditions of the building, grounds, and mechanical systems.  

One property I eventually bought listed at 400K, but wasn't worth that much in it's current condition I offered 300K and it sat for 2 months before they sold it to me.

Exactly as we said we would.

Because buying a house in excellent condition and then totally changing the layout can be expensive, especially if it's involving load supporting walls. 

That is exactly what I did and told my story on BP Podcast 238 in 2017.

The PM had a plumber go to the house, incurring an after-hours emergency fee, but was unable to assess the exact cause of the issue at night, stating it's either a frozen pipe or pump issue and they need to return during the daytime to fully address.

So having a borrower sign a deed in lieu AS A CONDITION FOR MAKIMG A LOAN is not going to stand legal challenge.  

I too am an AHP, AHPS funder and looked into a preREO on their site offered for $19k which they provided a $90k BPO in current AS-IS condition.

@henry Clark has posted on BP exact detailed steps to create a self storage facility.