If you can't get closed to that 1%, no need troubling yourself on figure out what the trash bill will be -- it aint going to work out. 

Please keep us posted I'd love to hear if it work out for you or any horror stories : )

My plan is to use this to fund down payments for quicker fix & flips, but of course if numbers don't work out I'll need to hold and rent out and grab landlord insurance. 

Let’s chat, but I think also run your numbers without the unit in the basement, how does that work out for you?

I often tell buyers who want to skip this expense that we don't hear as many horror stories as we work out the issues before closing and that's part of the process.   

Or a tenant disappears in the middle of the night and you discover $10,000 in damages.If you have a decent rental in a decent community, you can generally find a decent tenant and things work out pretty well.

I went to see a couple of properties that I found through Zillow, which didn't work out for me.

Even so, with no lease the tenants have great opportunity to not pay upon transfer of ownership... things can work out but the stars need to align, which I personally wouldn't bet on.

The LA and seller work out the seller net. 

My thought would be to work out some kind of partnership where I front the down payment on a house (two options, with a kicker coming later), and she house hacks.