I feel like there is limited risk in the live in sweat equity option if you buy right.

We read the civil code over and over to make sure were doing everything to the T and didn't want to risk making a mistake like sending it back late and not be allowed to charge them anything for damages. 

@Leroy Feireira-shearinBig risk and uncertain reward.

My understanding is this is very rare, but it's still a risk. 

There is some risk and, yes, your mortgage will go up, but it you purchase a good, cash flowing rental, it will more than make up for the extra payment

I suspect due to liability of fire risk.

It's a lot of risk for someone just getting started.

ANYthing you need, get before closing, or you risk not being able to get it at all.Get a history of the rental payments from the prior owner.If there is no lease, write one up and make sure it is signed prior to closing, or else the tenants may opt to not sign it.Cant change the rent or utilities mid-lease (If there is one)

However it does have its risks and rewards.  

(I would verify any info since these things change and I would want to know 100% before putting any capital at risk)http://madisonmanagement.net/investors/foreclosure...