The lender will make them have a property management company oversee the operation, to make sure they comply with the rules and regulations.

The biggest thing I can think of prior to going into rentals is to have an attorney review a lease to ensure that all applicable laws and regulations are followed to protect you when you do have tenants.

There are many regulations and codes specifying minimum load requirements that were not seen back then.

Looks like requests for public comments end today on regulators deciding whether private flood insurance can meet the mortgage requirement for flood insurance.

I wouldn't mind buying this property for $40k, putting even $60k into it, then having it as a long term rental since all of the plumbing, roof, mechanicals, electric would be new- the ongoing maintenance costs would be lower than other properties priced similarly.

All new foundation, all new plumbing, all new electrical, new furnace, new water heater, new siding, new roof, new garage door, new drywall (house was torn down to the studs and rebuilt when moved).

They can help you find buyers and sellers, teach you on the local laws and regulations. 

I am just not too familiar with the business aspect and do not want to break any laws or regulations but need to ensure that before the 5 month mark the lender is paid off or else the interest rate hikes up.

I just have two upper floor units that have already had the electric and plumbing ran but will need completely renovated and have already been demo'd down to the studs.

@Jorge Guadian It is time for you to learn your state landlord tenant regulations.