You can qualify either by meeting a set of standard requirements (the “safe harbor” provisions) or by showing enough facts and circumstances to validate your claim.

2) Will there be a problem getting rid of this home if want to, is there a standard percentage cut in home value that makes sense for this situation?

It seems that you are planning to do the screening of your renters by yourself which can be tricky so I recommend reading the book on rental property by Brandon Turner, link below for Amazon and it can also be purchased in the BP site The Book on Rental Property Investing: How to Create Wealth and Passive Income Throu... https://www.amazon.com/dp/099071179X/ref=cm_sw_r_sms_c_api_SwdXybQ3AKCXCI have a PM that handles my screening but I have made sure that their standards for a renter is at par or better than mine.

=============================Title Insurance Company is irrevocably committed to issue to buyer an owners title insurance policy covering the property with standard coverage customary in the state where property is located showing liability in the amount of the purchase price and showing insurable title to the property vested in buyer, subject only to the following(a) Title Insurance company standard exceptions(b) Liens for all current general and special real property taxes and assessments not yet due and payable(c) liens of supplemental taxes, if any assessed(d) any facts an accurate survey and/or a personal inspection of the property may disclose(e) the mortgage/deed of trust/deed to secure debt lien in connection with any buyer financing(f) any laws, regulations, ordinances (including but not limited to, zoning, building and environmental ) as to the use, occupancy, subdivision or improvement of the property adopted or imposed by any governmental body, or the effect of any non-compliance with or any violation thereof, including but not limited to, any disclosure an/or report required by ordinance(g) rights of existing tenants and/or occupants of the property (if any)(h) covenants, restrictions, easements and other matters that do not materially impair the value of the property or the use thereof(i) non-monetary encumbrances disclosed to buyer in writing prior to entering into this agreement (j) any other matter for which the title insurance company agrees to provide insurance at no additional cost to buyer===========================================================

To determine if the quote is good price or not: are you insulating the garage, are you running electrical, assuming standard one entry, are parts included in any?

The policy is designed to comply with all applicable federal and state regulatory requirements and establishes minimum standards for the extension of credit.

(re-finance later is easy)Is it the period of time you get the private lender money or more standard 15- 30 yearsAny feedback highly appreciated.

Can't make you buy a home that isn't up to your standards, irrespective of what they say.

Also something else to consider is that the fire code requirements are more involved for a 3-family (interconnected) than a 2, so if it's not already compliant with the 3 family requirements you'd be expected to bring it up to compliance if trying to turn it into a legal 3 family.The phone # for the building department (technically "Department of Inspections and Standards") is 680-5201 and their website is providenceri.com/DIS - as with most city services, I find that I can usually get some help over the phone (sometimes with some waiting on hold), but they are most helpful in person, if that's something you're able to do.On the specifics of that particular property, one option that often comes up with weird utility setups like you describe, is to just have the owner pay utilities.

Standardize now will save you time in the future.