What they look for is heirs milking an estate to devalue assets.Rents could be a tax issue since immediate family won't be an arm's length transaction if you were expensing off items, calling a "family home" a rental.

My properties have been fixed up so there really aren't too many items needing to be repaired either.

Many of the items on the list of violations are fairly normal stuff (i.e. light fixtures replaced, new electrical outlets and covers, add GFCI's in wet areas, replace some screens/windows, water heaters).

The Option will show up as a line item on the HUD-1 and you will be paid out of the proceeds at closing.

Dwaine,Fortunately, you were able to find the crack before we had major rain and other items in your house were damaged.

Before you start making offers, go to your lender and get pre-qualified and see what the costs will be and what pre-paid items there will be for you to pay.

Particularly in a four-plex, where you may need to replace several of the same items (lets say appliances) over the same time due to having multiple units.

This assumes everything is run perfectly w/ no vacancies, major capital items....  

It provides many strategies for managing your rental business and I found it quite helpful.As for your concern with large cap ex items such as roof replacement, HVAC etc, as long as you budget for those items and still cashflow, you should be ok? 

One other item; San Antonio has a website for looking up contractors' licenses; it is NOT 100% reliable, as demonstrated by a few followup calls I made.