Hey Gabe,I'm hearing mixed things about true multifamily properties in the conventional space (complicated underwriting processes) but I know that house-hacking is still very viable in the 2-4 unit space.As for DSCR, you just have to find the right lender for what it is that you are looking to do.

If it's a latent defect that's uncovered during a thorough inspection and the buyer wouldn't have been able to determine it before that time, then I think those are reasonable requests - even if they are expensive. 

Reason being is because I'd rather not have my company receive a check, and then turn around and pay it out to me.

It appears the units are below market, however with some cosmetic repairs and perhaps some capex's I feel I could increase the rent by at minimum (based on local comps) 68%.I would offer 85% of list and estimated $20,000 in repairs/upgrades (this is probably a generous estimate - the property appears to be in good shape, basically needs a face lift).With all these figures, including the 50% rule, financing with 20% down @ 3.5%, I come out to a profit of $262 per unit and a cash-on-cash return of 9.53%.So, does this seems reasonable?

The reason why I am asking is because I'm looking at fourplexs in my area and it seems the average price is $ 200,000.

myrealu(dot)comThey are approved by the state, but is there any reason why I shouldn't consider them?

@Jazz Wilson,I'm sure the non-paying tenants are playing a huge part of the seller's reason for selling. 

You can get into the NW Indiana market for very reasonable costs.  

It is not a big deal, however the judge needs to be able to justify the reason you are buying the house below market value.Let me know if you have questions.Bryan

Frame a storage area in the basement that can add a reason to a marginal rent increase.