Banks are very aggressive about artificially induced (meaning fix up not time) equity.  

How does this protect you from renter induced damage?

The loan part can be seen as an inducement to have you agree to the partnership by providing a low cost, easily accessible debt component.

Maximum Basic Standard FinancingSingle - $271,050Duplex - $347,000Triplex - $419,425Fourplex - $521,250FHA Basic High Cost area limits are:Single - $625,500Duplex - $800,775Triplex - $967,950Fourplex - $1,202,925Here is a site to look up Maximum financing with FHA;https://entp.hud.gov/idapp/html/hicostlook.cfmMaximum Financed Properties The maximum of four financed properties includes the subject property.Inducements to Purchase Certain expenses, paid by the seller and/or another interested third party, on behalf of the borrower, are considered “inducements to purchase” and result in a dollar for dollar reduction to the lesser of the sales price or appraised value of the property before applying the appropriate LTV factor.

@Michael Valerio   the issues Mike are as @J Scott alluded to.. from my perspective and its the exact same thing that happened to my client.. your rehab bid was off by a ton... your resale number was way high.. it induced someone to buy then they get hammered.. pump and dump is really what it is.. and newbies are prefect fodder.. you got me once.. but never again.

That's why raising their rent might induce them to leave and prevent you from having to decide.Let us know if you kept them and if so, how that decison works out for you.

Just know that Charlotte is not the most inducive environment for house-hacking.

"Consideration" does not include amounts imputed as a down payment or fee to the distressed home purchaser or a person acting in participation with the distressed home purchaser;(3) Enter into repurchase or lease terms as part of the distressed home conveyance that are unfair or commercially unreasonable, or engage in any other unfair or deceptive acts or practices;(4) Represent, directly or indirectly, that (a) the distressed home purchaser is acting as an advisor or consultant, (b) the distressed home purchaser is acting on behalf of or in the interests of the distressed homeowner, or (c) the distressed home purchaser is assisting the distressed homeowner to save the distressed home, buy time, or use other substantially similar language;(5) Misrepresent the distressed home purchaser's status as to licensure or certification;(6) Perform any of the following until after the time during which the distressed homeowner may cancel the transaction has expired:(a) Accept from any distressed homeowner an execution of, or induce any distressed homeowner to execute, any instrument of conveyance of any interest in the distressed home;(b) Record with the county auditor any document, including any instrument of conveyance, signed by the distressed homeowner; or(c) Transfer or encumber or purport to transfer or encumber any interest in the distressed home;(7) Fail to reconvey title to the distressed home when the terms of the distressed home conveyance contract have been fulfilled;(8) Enter into a distressed home conveyance where any party to the transaction is represented by a power of attorney;(9) Fail to extinguish or assume all liens encumbering the distressed home immediately following the conveyance of the distressed home;(10) Fail to close a distressed home conveyance in person before an independent third party who is authorized to conduct real estate closings within the state.

I've lived in a one bedroom apartment that was just under 700 sq ft ... all one one floor.It has a reasonable sized living room and bedroom and plenty of closet space.Since the two story has to have a staircase, that has to deduct about 25 sq ft one two floors. 675 - 50 = 625 and that is at least "claustrophia inducing."

You can ask the seller to pay up to 6% towards closing costs (sellers concessions) you can purchase up to a Fourplex property.Maximum Basic Standard FinancingSingle - $271,050Duplex - $347,000Triplex - $419,425Fourplex - $521,250FHA Basic High Cost area limits are:Single - $625,500Duplex - $800,775Triplex - $967,950Fourplex - $1,202,925Here is a site to look up Maximum financing with FHA;https://entp.hud.gov/idapp/html/hicostlook.cfmMaximum Financed Properties The maximum of four financed properties includes the subject property.Inducements to Purchase Certain expenses, paid by the seller and/or another interested third party, on behalf of the borrower, are considered “inducements to purchase” and result in a dollar for dollar reduction to the lesser of the sales price or appraised value of the property before applying the appropriate LTV factor.