Quality over quantity my man.

Others mentioned it would not pass self sufficiency.

So, sometimes the headroom isn't sufficient (7' minimum finished ceiling height) or the basement is damp because there is no drainage etc around the foundation.Second, you need egress for a bedroom in case of a fire.

The business provides sufficient cash flow to pay all my bills in full every month.

She had sufficient income at the time to get a mortgage and fund the rehab, so the student debt did not effect her DTI enough to prevent her from buying and so she leveraged real estate to accelerate the process of eliminating debt.

While I'm not qualified to speak on whether or not you should be concerned about purchasing the property from an inspection and safety perspective, but I'd like to remind you that when purchasing a multi-family unit with FHA, this has to be a primary residence, and the Self Sufficiency Test applies: 75% of the total market rent (aka pro forma) for all the units has to be more than the total monthly mortgage payment.

But there's nothing wrong with putting 20% down and it certainly is less risky to do so as long as you have sufficient liquidity afterwards

In a FHA loan there is a provision on  3-4 families that  the building needs to pass the self sufficiency test. 

I'm getting all my ducks in a row before I make a decison but it looks like if this sale falls throgh I will rent it out I can pull come money out and still have sufficient cashflow the house is in a great area. 

We will gladly stay a small organization and focus on quality over quantity.