But due to the above factors- we're still in a hot and heavy seller's market, with no real relief in sight for buyers (add to that, with the new Burnett / National of Realtors settlement, they will be squeezed even further, having to also potentially shell out their Buyer's agent fees, which, traditionally, have been added into the seller's listing price before listing to provide to the Buyer's agent).

Offer them a chance to explain any difficulties they may be facing and discuss potential solutions.

I recently received an application from a potential tenant, and everything looks good so far.

Mainly, because structural issues can be a complete black hole of money, time, effort--and it can be very difficult (and costly) to anticipate just how much money, time, and effort they'll consume.First, you'll need to figure out what's causing the structural issues--it could be settlement at the footers caused by ground water, it could be wood rot or termites in a beam, it could be masonry degradation caused by water coming off the roof, it could be improper drainage of the roof, it could be tree roots degrading the foundation, it could be a plumber who cut out a critical joist to install a line 20 years ago, it could be improper construction, it could be any or all of those things, and it could be any number of other potential causes.

On the mid-term side I think it has really great potential.

While this might sound low compared to some high-yield investments, it's steady and relatively safe given the high down payment and the over-market selling price.In conclusion, while the 3.03% CAGR might seem small, remember that this calculation doesn’t consider other potential financial benefits like tax advantages or the value of having the capital upfront.

I am risk averse and if I were to purchase, I would tear down to the studs and do a full rehab {this would include getting rid of asbestos shingles and insulation).1) I have done a ton of research and it appears as if getting rid of asbestos is very DIY able assuming you spend money on the safety equipment and use it properly. 

Meanwhile, the investor is taking all the risk and pouring in all the capital.Would you rather she lose the house and get nothing? 

Leverage tends to adds risk, I always recommend having the worst case backed up by, long term job prospects, other liquid assets to cover losses, an/or the ability to take measured risk more than once to even out uncertainty.The richest individuals use leverage to their advantage all the time, but it should be used with care.Zach

I know there are risk involved like market down turn, not selling for ARV, higher than expected renovation cost, etc, but I'm really worried about people just taking the money and running away with it.