Ask to speak with some of their current owners and current/former tenants.

For a long term investor:Would it make sense if you could buy the home at a steep discount and then let the owner stay rent free for a specific period of time?

They think they can make a few bucks by increasing the payment and selling on a Wrap for a little more than they are buying to the next guy.

You'll have access to owner occupied loan products, therefore saving on your down payment, typically 3-5% compared to 20-25% for non owner occupied properties.

The lender just records the warranty deed and is the owner of the property.  

If you can qualify for an FHA mortgage that amount can be as little as 3.5% of the loan value.  

When relying on LIHTC to make the deal pencil, yes developers wait BUT only if they have the resources to wait and only if the property owner is willing to not close on the property until the project is fully funded.

I would do you due diligence but I have seen others use it to purchase non -owner occupied properties.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

This worries me a little.