I must admit, I am struggling a little on this one.We already made an offer on the home and the counter was decent, still keeping us below initial asking price.The offer was with indication that we would be doing an independent home inspection, always a smart idea.At first visit to property, there was concern on the diagonal/zig zagging lines in the walls, the few gaping holes where the stairs meet the home – evidence that the staircases had at one point pulled away/separated from the home.This cracking is by no means just settling, my limited knowledge of home construction was telling me, this here was a structural issue.But wait….. there’s more!

@Dorothy Ma If I read the zoning correctly, this particular block can only be duplexes limited to two stories.

Any mistake a landlord makes will void your application. 

@Petit Morne Depending on the city, and if it is in the city limits, they may not allow new mobile homes or they may not allow you to hook into the city water/sewer if the zoning isn't right.

A licensed pesticide applicator will need to evaluate and possibly treat the home/property.

@JEFF D. wish I could be more helpful to you, I have bought and sold 2500+ units and never had to do a Phase 2.As you finish out your due diligence period, and assuming you will sell this asset at a future date, a Phase 2 could limit the number of buyers in the future so give this 12 unit deal a real close look to ensure it is a solid deal.Good luck!!

That's why a lot of guys will get their 10 loans(FNMA limit) and then go look for a portfolio loan to pay the 10 off..

So remember, for legal and tax planning, a good CPA will recommend that clients hold their properties in an LLC or Limited Partnership and run their businesses as S Corporations to avoid self-employment taxes.

Unfortunately, my experience has been that the options are limited without paying high fees.

.% down of the purchase price and the rehab costsCan be used for primary residence with 1-4 units (could also be looked at as a disadvantage)  When using 2-4 unit property, projected income from other units can be used to qualify 6 months' worth of mortgage payments can be rolled into the renovation budget if the house is deemed uninhabitable by the HUD consultantCredit scores can go down to 600s (lender dependent) DTI can go to as high as automated underwriting system allows (typically 56.9%)Allows you to buy a property in any conditionCan use it to fix minor repairs all the way up to basically a full tear-downFHA 203k Disadvantages: Interest rates tend to be about .25-.5 higher than regular FHA loan Additional costs include HUD consultant fee, inspections, title updates, and supplemental origination fee (Cost of doing business, but this is built this into your numbers, so it's no big deal)Must use a licensed General Contractor for a full 203k or up to 3 specialized contractors on the limited 203k Must hold onto the property for 1 year and live in it.