Based on the long list of items flagged on the inspection, in addition to the fact that the house is sold as-is with all the seller's junk included (basement is filled to the brim with moldy asbestos filled junk), I doubt the $10K rehab budget is realistic.

A lot of newer Utah townhouse communities have a pool and clubhouse, which translates to a $150+ monthly HOA fee that will eat into cash flow.. not to mention the rules they sometimes impose on certain communities around how many units can be rentals.There are some townhomes in west American Fork (basically Lehi, right on the border) that you can get a similarly priced, newly built property with 4 bedrooms and 3 full bathrooms.

If she isn't able to find one, that's a red flag, and I would move on to the next best tenant that meets your criteria. 

With FHA, they may flag the additional units as non compliant.

Tenant Red Flags - we use Buildium to run background checks on applicants. 

In the case of Yield Street there were many red flags way before the SEC investigation ever started.

The one I'm working on is a 2br 1ba near Temple and the lofts areas off of American St.

Also when the realtor gets the purchase contract he/she "Must" review the approval letter and if it showing FHA financing on a condo approval it's generally a flag to check. 

@Alex Uman south Kensington between olde Kensington and Norris square area ( front to American ) you can still find some great properties for rehab or buy hold for at least 3-5yr.. that will for sure appreciate and they continue to bridge that gap.. front to American ave

American-made.