He tells me this is a common "takedown" for this type of sale.  

Would you give her a 5-day notice for breaking the lease? 

This is a very common and popular way to get started investing and it's highly encouraged.It's known as "house hacking" around here on the forums.

One common rule of thumb is to take 80% of the purchase price for improvements and 20% for land.Another way to do it is to look at the county's values for both land and improvements and use those to determine the percentage. 

You will notice 504B.365 Subd. 3(d) is where the tie into Minn.

We prefer to do a preliminary walk-through as soon as we receive the tenant's notice to vacate.

I noticed you mentioned nothing about that, or that you might be a registered non profit, attorney or other exempt from licensure entity and, I'm sure you pointed the borrower to New York consumer protection agencies so that they could understand their rights and protections that may be available to them against foreclosure rescue fraud....but then again...you're a fast learner.

Henry, you will have problems collecting rent if people don't pay.In NY, units without C/O's are common, but it causes issues in evictions, and people can turn you in to authorities.

Also, the reason it's small is because the amount of time it will take you to manage it (collect rent, late notices, overlocking, auctions, etc.) versus the amount of money you will make.

These are very common questions to hear and it's no big deal to answer these.