You would then be stuck trying to sue the seller, title company, RE agents, etc. to try to recoup your $500 loss because you got bad info at closing.This type of hypothetical situation (and many others) can be avoided with an estoppel from the tenant prior to COE.Is it likely that you got bad info on a duplex?  

Another stipulation of the FHA's OO requirement is that the owner must take occupancy within 60 days after closing, so you want to avoid putting yourself in a situation where you are unable to do so.  

Personally, I find that people who have been in the game a long time are more than willing to share their war stories, which helps to avoid making the same mistakes.  

Response to Angela DeBorjaI believe you need to be where sellers, owners, investors and auction bidders are to really be market wise.Learning this business has many advantages, but also giant pit falls; tenants suing you, not paying rent, rent escrow, no income (mortgage must be paid), repairs, unnecessary calls.negotiating with sellers can be distressing; tax sale, mortgage foreclosures, health issues, bankruptcy, estates.Bidding on tax certificates, lots of competition.I like to avoid the competition and deal directly with people who really want or need to sell.Go where you are respected and appreciated - to the sellers who want an offer.Rent court - who goes there - tenants who don't pay and----- and landlords with tenants who don't pay!

All things being equal though it's always better to avoid questions rather than be able to answer them.

The name of the game is avoiding turnover and down time.

I love to travel and have traveled extensively around the world - I've been to four continents and countless countries, I've climbed waterfalls (yes, that means going up against the water), kayaked with whales, and successfully avoided a police search party in Colombia (what happens in Colombia, stays in Colombia). 

And of coarse. avoid properties with a well.

If you want to avoid the trouble of raised eye brows, perhaps make a few deposits - all less than $10K.

We have significant cash available to us as well (we thought we'd be moving to San Diego so we avoided buying a house; now it's clear we'll be here for a while, so we're in the market.