Title insurance protects you from the unknown ones.

Try to uncover any unknown information.Example, I have had to go to the county clerk's office to look at a deed on a REO so I could find out about the hidden 2nd lien.

There is alot unknown that needs to be clarified before answering "why can't they just do it as a investment property @ 90 LTV"---things like how you are going to document income/assets, FICO, cash reserves, # of properties owned/mortgaged to name a few...I suspect that it is not your intent to occupy the 2nd unit as Wells Fargo suspects and this is where the FRAUD comes into play---if you intend to rent out both units and claim otherwise, the doc they want you to sign could serve as the noose at your own hanging.

There are ALWAYS "unknowns" that show up once you are swinging the hammers.

My thoughts are to buy for $25-35K cash and use a hard $ lender for the rehab, then refi & cash-flow.I just have never really been in the lease-option-RTO or landlord business, so I'm cautious of the unknown.

Here's the basics on the house:--4000 SQFT (including 1000 SQFT finished basement--6yr old central unit and unknown age second unit--excellent foundation with no to very minimal settling--split level with large bedrooms and large bathrooms--1.5 acres lot in a good neighborhood with a few million dollar homes a couple of streets over--nice but neglected landscaping--built in late '70sFannie Mae wants $179k but it needs everything on the inside.

I'm using Kijiji because it's new and unknown.

Depending on alot of unknown factors it looks like a 25-30k rehab, size being the main factor.

I think the big unknown is generally going to be maintenance expense and maybe delinquencies.

But if your wife isnt on board you will never be..The fear of the unknown is a great motivator for people to never try...I would ask her if it was okay to make the two of you a better lifestyle....