I have told him that all occupants must have a lease agreement to be a resident. 

See the 3 things after the financials Purchase price: $390,000 I can get financing at 25% down, 5.5% amortized 25 years Per seller: 90% occupancy or higher since they owned in 2002 8 - 1 bed/1 bath at $550 per month 6 - 2 bed/1 bath at $650 per month *One of the 1 bed/1 bath has an onsite manager/handyman living for free so there is no property mgmt costs in the expenses* Owner pays water and trash 2017: Total Operating Income: $79,989.50 Expenses: - Lawn Maintenance: $1,800 - Water: $6,816 - Trash Collection: $1,740 - Pest Control: $820 - Supplies: $4,280 - Repairs: $9,852 - Insurance: $4,153 - Property Taxes: $10,515 Total Expenses: $39,976.82 NOI: $40,012.68 2016: Total Operating Income: $83,154 Expenses: - Lawn Maintenance: $1,800 - Water: $5,820 - Trash Collection: $1,680 - Pest Control: $604 - Supplies: $6,639 - Repairs: $9,910 - Insurance: $4,153 - Property Taxes: $10,521 Total Expenses: $41,127 NOI: $42,027 So if I’m all in at $115k (down payment + closing costs), assuming 40k NOI, i’m looking at 16.4% cash on cash with one unit vacant at current rents (without anything set aside for capex however) WHAT WORRIES ME: 1) No washer/dryer connections AND no laundry facility on site (would have to build a new building and run new plumbing to add one).

But then I couldn't get FHA because of the 1 year occupancy requirement, and then I'd have to wait till I saved 20% for a conventional mortgage and that takes more time, and time = money!!!

Thereafter, the Unit Owner shall deliver a copy of the signed lease and lease rider to the Board within ten (10) days after it is executed and prior to occupancy. 3.

There are usually some REO's here and there that would have been great, but they typically are reserved for owner occupants for so many weeks, at which point they get snagged up well before then. 

You always want to ensure all occupants that are legally adults are added to the rental agreement.

(about an extra 300k per year) (2017 was 6.65mil)Last two years are highest occupancy rate and gambling win in 10 years. https://res.cloudinary.com/simpleview/image/upload/v1/clients/lasvegas/Historical_1970_to_2017_c6545898-1224-48cf-bff5-b08a53ce4369.pdf

DTI,LTV, guidelines, occupancy, etc...VA is better than conventional in most cases; Conventional is better than FHA in most cases;But each situation needs to be planned based on preferred outcome.

I found a nice beach house that I contemplate to move forward as the current occupancy rate doesn’t provide the positive cash flow but it is a very nice property.

Furthermore, there are always some "deal-breaker" situations that you would be willing to cancel the entire transaction to avoid.What you don't need is the fancy, pretty (and pricey) "big-production" report that most inspectors offer to owner-occupants.