In other words is the seller or management company "cooking the books".Example.1.Taking money from another account and making the tenants look like they are paying on time and in full to show 100% occupancy.2.Giving rent credits like first 1/2 month off apartment rent,or full month rent off,or no security deposit,pet deposit,etc. to inflate occupancy.3.Retail leased properties where market rent was 18sq ft but the landlord is selling because lease is coming up for renewal and if tenant doesn't get 12sq ft they will upgrade to the new grocery anchored shopping center that used to be 22 sq ft and is now 18. 4.Watch out for pre-foreclosure volume and foreclosure volume for your area.What I mean is when a buyer purchases a distressed property for below market value they can then rent at a lower basis and still make the same or better profit than you.I have seen this first hand.I have seen rents for apartments 2 bed be 650 a month.Then a few foreclosures happen that buyers purchase cheap for cash.They come on the market and rent for 550 a month.The buyers rent low to get the best tenants to choose from and build occupancy quick.Then over time they will up the rents.What this does is put tremendous pressure on landlords already hurting that have high debt service loans.Then those get foreclosed on and a domino effect happens until the market settles.So my main point is don't count on current rent or future rent.I look at where the market is going and correcting to and buy really low so you have room in case the worst happens.This will exclude many properties.If you make great income form other than real estate and just want a tax shelter with pay down etc. then you might look at it differently.

But for foreclosed owners who are not angry and combative, the Occupancy and Move-Out Agreement has worked quite well.

A good example would be a condominium unit with either no condo association or a very low owner-occupancy rate.

The place needs tlc but already has 55% occupancy.

Okay, what you need is following: - rent roll last 3 years - approved profit & loss of the last 3 years, the last 12 month in detail - property statement (needed maintenance, shape of the units and the building) any violation/permit from the city - the complete unit mix (how many 2 bed, 3 bed and so on) - todays occupancy - market rents for the units (yes or no) - is the property self managed?

Given what you've described, you should be fine renting the house out as long as you sell within the next 3 years (so last 2 years count towards owner occupancy).https://www.irs.gov/publications/p523/ar02.html

This one was just beat up by occupants who did not take care of the home. 

However, if the deed was properly written, in theory the current occupants could just go to the county and record the deed.There might be several reasons why someone would not record their deed.

First, I would ensure that all occupants over the age of 18 have completed an application passed a background check.

Similar to the 203k in that it's purchase and renovation all in one, BUT it's not restricted to owner occupants!!!!