So I am currently looking to buy a multi-family property with a conventional 5% down loan and live in the property. I have a specific property I am currently pursuing and have been trying to refine my analysis with mo...

Buying 3000-4000 sqft homes for 150ish and doing 130,000 or renovations.The properties are in such bad shape no one will insure me so my hard money lender may back out since I cant find insurance.The trouble is the houses have roof leaks, crumbling porches, broken windows and debris in the yard, all things insurance companies hate.And no, a normal vacant and under renovation policy wont work.

That way the home is significantly cheaper but the rental demand and rent amount don't suffer because it is only a short commute to the city. 

I paid an expert $425 and he told me that it was all cosmetic and that it wouldn't need any repairs because the foundation hasn't shifted in a long time and likely wont again.

so I thought it might take 120k, could be more. this is the first deal I spot, and the investor here are crazy, so I might not have a chance to negotiate. however I do want to know what's the bottom line, so I wont blindly jump into it and get myself in trouble. 

You'll need roughly .90% of the monthly gross rents to be higher than your entire monthly PITI payment (prin/interest/taxes/insurance monthly) which is near impossible to do in Ventura county even if you buy extremely distressed but then FHA wont finance you (probably) due to min health and safety requirements with FHA (unless if you do a 203k FHA rehab loan but thats another discussion).The only way to combat the FHA SS rule is to put more money down which negates the benefit of 3.5% down FHA loan, find ways to decrease your monthly payment like rate buy downs, use of FHA 5/1 ARM instead of 30 year fixed, get lower insurance quotes, or to increase the rental income (either or).

Any other examples would be great to learn about.Thank you Just various forms of depreciation (something suffering wear and tear over time) and depletion (the well in your back yard that has oil being extracted).

I sent him a 5 day demand for payment letter and got no response.He wont return my calls, emails or text.

I know it wont pass inspection so I would need a cash buyer, right?

If the person gets a raise / works more hours or better job the tenant share increases, but if they lose their job or suffer some other financial setback, it goes down and DHA covers the difference.