Someone agreed to pay and not only didn't but refused to leave a property they are not paying for so yea I guess your right that is fraud in my opinion. 

Is it a “bad” decision to put 20% down on this multiplex, likely have most of the mortgage covered by the rental income while continuing to pay rent at my current apartment? 

Seems like cancer patients and transplant patients want MTR...may not want to stay in hotels...may want someplace pet and family friendly and want a host with a heart that can shorten their stay---Say YEAH....or extend it, without paying big penalties.....and these are people often networking with other patients and families who may be your clients too. 

I would pay the 2500 but I dont trust the seller to get the place to pass.

You also could look at a line of credit on the property and pay interest on the money as you use it.

This means instead of getting a mortgage from the bank, you pay the seller in installments.

I also had non-paying tenants that owed me, HVAC unit needing replacement, large trees hanging over property structure that suddenly died due to beatle infestation and college tuition due all at the same time.  

You won't cash flow in most places while you're house hacking but the goal should be to pay less than you would renting. 

@Peston Parsard not sure if enough viewers will note & care about free internet and pay more in rent.Regarding the MLS listing, going to guess your PMC isn't charging you a Placement Fee equal to one month of rent?

My cash in was 10% of the purchase price plus paying upfront for the appraisal ($660).