My main concern is this - "how many people are going to have enough to put 10% down on the deal?"  

Hi @Benjamin CowlesCan you clarify your concern? 

The concerns introduced to me yesterday were that city inspectors could fine very severely for improperly dealing with such hazards and that abatement and other procedures can make a deal in my price range unprofitable.  

2  how concerned should I be that I don't know the town very well and it's so small?

I was just wondering if there is any advantage to having a RE license while being a RE investor.Thanks for the concern,Dan

http://www.nbcnews.com/business/real-estate/house-...Any thoughts from the seasoned vets in the trenches?  ... sure it's an NBC article... but still puts out some interesting thoughts.  

But my question/concern would be how well does that hold up when you're talking about a four-plex consisting of four 550 sq ft 1 bedroom units.  

I wouldn't be concerned about that, but it sounds like you're dealing with a wholesaler, not the owner.

That would only be 3 people living in this house, but I'm concerned I'll run into problems having the two kitchens, that somehow that will effect the zoning rules?  

I would not use this strategy on an occupied unit, however, due to theft concerns.