I'm curious as to how you made out, and whether or not you were able to get the Seller to agree to hold funds in escrow to cover the cost of the rectifying the violations.

They are the ones putting their money at risk in lending it to you.If you are relying on Capital, then you use your savings of $50k to buy a house Subject To or on a Wrap and start investing.If you are relying on Knowledge, you team up with someone who has either Credit or Capital or Both and you provide the marketing and acquisition, then the rehab if you are doing rehabs, then the sales of the property and your partner provides the Credit & the Capital.In this case you have knowledge, knowledge of a good deal.

A few articles I wrote on the subject: https://www.biggerpockets.com/blogs/10145/73373-op...andhttps://www.biggerpockets.com/blogs/10145/73373-op...

We plan to have the best of both worlds and word it in a way that we are covered.

We also guarantee tenant rent if they stop paying we cover lost rent and evictions costs.

Someone to cover down on SFR?

If you start younger then wne I started in 10 yrs you'll have a few rentals even on low W2.Having decent dual W2, living well below our means we where able to buy 30 rentals in 7 yrs on the day I quit.Most markets have portfolio 30 yr lenders, today a misnomber, portfolio today means does not check W2/DTI but just based on the rent covering the mortgage. 

One way to get around some of this is to physically connect the two structures with a covered walkway or similar type structure.

You can take a higher rate at closing to cover your closing costs, and then refi later on.Hope these help, good luck and be patient, it’s a hot market out thereMichael DuncanHulali Kai Realty

Be creative when it comes to financing and think of how else can you cover the down-payment.