Those rooms aren't separate living units with unique addresses, so it's one property that you live in, making it not an investment prop.HOWEVER, if you live there for two years, you could sell and exclude up to $250k of CG, or $500k if you're married filing jointly.

Look up local commercial developers in the area and possibly your family might joint venture with them.

I would rent it out after rehabbing it but wonder if there is a genuine benefit by doing it this way versus finding my own deal. 

I bet you have already done this and are looking for an alternative.If it's for your first investment then you could look for a private lender, a joint venture partner, maybe even a hard money lender in your area.

Put your feelings aside, they are jointly and severally liable for any and all damages.

You should look first at the Deed and see your Seller's name and how he owns it- sole or joint, to save time negogitating with the wrong person; then cleck the tax history of the property- to see it is up to date; and then HOA history and/or city liens if any.  

Being genuine and authentic is what I think strikes you apart from allllll the other people trying to do the same.Good luck!

You might also want to look at joint venturing projects, and being more active in the deals your money goes into. 

And I wasn't suggesting you need the skills of a Flipper to ACTUALLY flip, but rather, you would need them to know if you were genuinely giving yourself a chance to regularly buy UNDER-market value, in "hot" markets.

Sure, I miss Genesee Beer, the Distillery, Sticky Lips, Amerks games and all the people walking in Brighton on the Sabbath, but juice is worth the squeeze regarding moving from Roch to Raleigh.A few pros:  (1)  Lower State Income taxes, (2)  Healthier and more diverse job opportunities (higher pay and opportunities for advancement as a whole), (3)  BBQ - I won't step foot in my favorite BBQ joint the Dinosaur in Rochester since that Commie George Soros purchased a stake.