(you wouldn't want it to risk your financial health), Is this a rental I would want to live in? 

I am and have been for 15 years a professional personal trainer and health coach and own a online training business.

Assisted living people are just one health crises away from a nursing home or hospital.

It may not make sense as a flip, but the numbers work out for me because:it's close to work (DTLA)the neighborhood is very safeIt's easy to rent out rooms (close to Cal State LA, USC health science campus & DTLA)I'm only putting down 5% and the monthly expenses will be very lowIf it appreciates, that'll just be an added bonus.

FHA has some requirements for condition, but they are basics like the roof being in decent shape, no wood rot, no "health and safety hazards", components up to code,etc. but they don't require every little nit picky thing a home inspector may want to come up with.  

Tenant agrees to not allow any personresiding on the premises, or any guest, or invitee to use controlled substances(including alcohol and prescription medications) in a manner that will eitherdisturb the peace and quiet enjoyment of other Tenants or neighbors adjacent tothe premises; or endanger the health, safety, or well being of Tenant or anyother person.GUESTS.

Declining health, partnership splits, tax event, divorce and liquidating assets awarded to them in the divorce decree.I have ran across all kinds of reasons.

The area is dominated by military, health care, and some executive rentals.  

If they smoke and your policy is that you do not allow smokers as tenants, they have to go.If you permit them to stay, you will come to regret your decision and will pay the price both financially and in free rent in your head for allowing yourself to be talked into an obvious conflict of behavior.Smokers pay a price for their habit beyond sales taxes and health issues.

@Ted Akers @Don Konipol @Joel Owens @Steve Sparks I hope you all enjoy good health and I wish all the best for 2015!