Follow up, Just discovered that the house was zoned for 3 units, then re-zoned to 2 units but it actually has 3 and three separate tenants. 

This is my very first post and I am very excited to have discovered Bigger Pockets.

Just for example, in Dwolla's case, it took 8 years for their misclaims to be discovered.  

AdamWhen you borrow money from banks to finance real estate, you’ll quickly discover that a group of rental houses and small apartments, properties with more than four units are a whole different kettle of fish than financing the home you live in!

It depends on the title of the property if its residential with a live work component that is still finaceable but if its commercial in title its "commercial," and will not work atleast with 1-4 unit fha financing.You'd be subject to commercial financing parameters. 

You may not realize it yet, but it won't take you long to discover you have made a very wise choice in joining this website.

If you signed off on the move-out checklist only to later discover the holes were bigger than you first noticed, that is your mistake unfortunately.

If every detail is not agreed to in advance and in writing you will have nothing but disagreement down the road.I would never do it with a group but likely once you start the process most will discover it is a bad idea and drop out.Better to have max two active partners and the rest simply as silent money partners guaranteed a annual return.

As a person starting out, contributing to a company sponsored plan that has a matching component is key.  

In addition, you will want to verify those actual results (insurance quote, check tax records, schedule out cap ex based on the cost and remaining life of the individual building components for this building, call utility companies, etc.).