The spread enables me to get low or no cost insurance.Lastly, this isn't my personal example but my partner used notes to pay for the addition on his house.

I am looking at two properties next door to each other which if I could get a 33% reduction I could be at 1% rent to loan. 

THat CCR is low isn't it.

(not uncommon).Sometimes you'll see a place in good condition (but with low reserves, indicating they spent the money to renew the place); or one with high reserves but in dated condition (sign of a tight fisted board).

We found that after 5 it's a pretty low conversion.  

A typical mortgage loan (20%-30% down, low interest, and 30-yr note) is available to those houses which are habitable.

It seems it would be wise to take a slight reduction in rent as opposed to taking a worse tenant.

If you're getting $900/month that's really good rent; it's basically low end for a 3/1.However, $65,000 is a better price for a 3/1 completely rehabbed.  

The chances are very low without the bond, also most contractor's bonds cover negligence and fraud, the "performance" part usually falls under negligence aka leaving a project unfinished, charging too much, etc.

Multifamily properties can be utilized to provide low income housing or student housing among others.