This should be able to qualify for residential if it's 4 units and a 30 year amortization would improve cash flow. 

The situation has improved, however tenant A still feels uncomfortable with tenant B and feel that they are being passive-aggressive towards them.  

Like some of you have said, there is no way to protect yoruself frome very posible situation or hazard but the feedback I am getting makes me realize I need to continue to anaylize and improve on my lease yearly-which I will make a part of my process moving forward.  

Your basis is your purchase price plus purchase costs plus any capital improvements.  

Since that didn't happen it gives you the chance to do a long overdue improvement which should let you sleep better at night.

He has been told to put in as much as $30k for improvements to make the house more marketable.

Here are the details:Single family, Purchase price $25kRehab costs $23kARV $75kEstimated profit for flip is $10k (13.5% of ARV), or monthly rent is $800/monthI would like to make a definitive decision upfront because the improvements/scope of work will vary slightly depending on if this will be a flip or rental. 

I needed to tap into some of the equity created from the appreciation for improvements.  

Do you have cash partner to buy and improve?

Due to the size and zoning, it seems a win/win.The house has lots of issues and is just 1600 square feet, and the potential for income is of course better by improving the site.I'm hoping to tap into knowledge on this site.