This deal was split between three investors. 

Three of these are half acre plots all side by side, comprising a relatively large plot.

That way your property gets lumped into 4 bdrm comps instead of three bdrm comps which will give you a better appraisal.

I feel that if we spent some capital (about $50000) improving the property the return on this would be three- fold.  

This helps you because; when you go to your next agent, he/she can provide sufficient evidence to different carriers, on what the loss ratios, etc, actually are.

Partnerships can become messy and having three at the table instead of two can make it even more complicated.

Here are exemptions to Due on Sale(d) Exemption of specified transfers or dispositions With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon— (1) the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property; (2) the creation of a purchase money security interest for household appliances; (3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety; (4) the granting of a leasehold interest of three years or less not containing an option to purchase; (5) a transfer to a relative resulting from the death of a borrower; (6) a transfer where the spouse or children of the borrower become an owner of the property; (7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property; (8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or (9) any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board.

All three have been very successful.   

If the property is held in the name of decedent, you'd need a RM balance leaving sufficient equity to cover the costs of the title fix.....which assumes there are known heirs whom can act as admin/exec in a probate action.  

For example you can buy a three bedroom for $80k real estate taxes $4000 and it would rent for $1600 if you did minimum or $1700-1800 if you updated.I fly in to PHilly yesterday to inspect the house I am buying today.