They made a soft commitment, at my request and then followed up when everything was finished.

That's strictly a cashflow mentality since he seldom assumed appreciation.Colorado is experiencing major appreciation, so you could lower your payback standards since your profits would come from appreciation.Finishing the basement: Assuming $15,000 to get an extra $250/month, that's a payback of 60 months or 5 years.

With title insurance If any type of encumbrance, lien or other defect to the title is discovered following the transfer of ownership or the placement of a mortgage lien, you are protected..General Warranty Deed is the way to go to avoid future headaches. 

Personally I want to money to fix it myself, however if following the lender's policy I'm only able to get 3% credit from sellers and it will go to closing cost...

Don't let naysayers that have no numbers and no information other than news sound bites scare you from pursuing things that make sense from a strictly financial point of view. 

But if that's not what I'm looking for then house-hacking doesn't necessarily seem like the best move.I'm not sure I am following....but the point of house hacking is low down payments through primary residence loans (3.5% FHA, 5% Home Possible).  

My similar, but not the same experience follows.....

This is a follow-up to my last post, wherein I was contemplating walking away from my first potential deal (I did), mainly because of the inability to see any sort of detailed financial history for the 8-unit property.I tried doing some searching for my particular question in the forums, but I can't seem to figure out the right keywords.

There are several previous threads that might be helpful:http://www.biggerpockets.com/forums/70/topics/4251...Type the following in a Google search: site:http://www.biggerpockets.com/forums/70 jv

Following this.