For STRs, the typical options that you'll see utilized are conventional, second home (if you plan to occupy the property for more than 14 days but less than 180), or DSCR.

In my case, my real estate agent ran comparables that showed the sale price of a house without a garage could justify the investment, meaning the amount I was planning to invest plus the current value of the house was less than or equal to the ARV.

My original plan was to move into the “turn-key” unit and rehab the other two units over the course of an estimated 6-months.

I was planning on living in 1 house if that makes any difference. 

He did do the entire roof because that was his proven zone.I applaud you for wanting to take on more work.If yall can put this action plan to work, our team can get you across the finish line.

Other concerns that immediatley stand out: no mention of who has authority, no voting rights etc, no reps or warranties & no language concerning winding up the partnership before the 10 year term ends to name a few.

Quote from @Robert Nguyen: Hello,I was approached with a Off market deal for a small property in Anderson, 2/1 700 sqftThere is a M2M tenant paying a healthy amount in rent, I was going to just pay cash for this place, it is well under 100k.The plan was to collect rent until they decide to move out and then spend a little bit to update/renovate even though it looks pretty good so far, and then flip it for 110-120. 

***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?

“Should I be able to find decent tenants for the length of time I plan to own this property?”

I did purchase a large 6/3 home with plans on splitting it into a top/bottom duplex.