Generally working with mortgage brokers or large lenders that have a good reputation and established guidelines is the way to go.

If its a tax deed foreclosure that may be different as typically in most states you would have to go throught quiet title. but if its a mortgage foreclosure you should be able to get title insurance.

@Cristian Estremera the initial difference is the financing options.1-4 family are eligible for FNMA, FHA and VA mortgages.5+ units require commercial/DSR loans.As number of units increase over 5, management changes.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

If the goal is to "just get it done," and there are residential realtors involved that think closing in 21 days matters (in the SFR world, it does), then this honestly may be the best route.A true commercial loan will have an interest rate on-par with a 30YF primary residence SFR rate, but rather than being a 30YF, it'll be fixed for 5-7 years, and then you have to pay the mortgage off entirely, most commonly by refinancing. 30 year amortization may still be in play.

One thing we have noted as troublesome for some potential househackers with this conventional program is that in order to use rental income from the other units towards qualifying you need to have some current housing expense verified (rent, a mortgage, etc.) 

Banks are less open to it but talking with the right ones (especially the right mortgage broker) might do the job. 

Buy a 2-4 unit with an FHA 203(k) loan which allows you to finance repairs into the purchase mortgage.

If the odor is not properly mitigated that will cause ongoing problems.

This will really highlight those associations that are properly managed vs. those that are not, and those that are not are going to be a very expensive lesson learned.