We're a local PM and this is very common. 

You need to listen to the latest podcast with @Avery Carl: 5 Pitfalls When Buying These “Crazy Cash Flow” Properties (biggerpockets.com)I have a friend that bought a property through her in the Smoky Mountains and he's doing great.

This is not at all the case if you have to pay for other people to install tile for you.About the wood: there is no other flooring in common usage that will outlast 3x oil-poly coated 3/4-inch oak strip flooring.

The most common portfolio style loan in Texas is a 20 year adjustable rate loan.

Are there big pitfalls I should be aware?

A person for whose benefit the bond is written or his legal representative may bring an action in the district, common pleas or municipal court where the landlord resides or does business for collection on the bond.Bottom line, if the landlord obtains a bond, the funds can be co-mingled in the landlord’s general operations account, from which normal bills are paid.

Also add this:  "This lease is for use of a single room only, personal items left in the common areas can be removed at the discretion of the landlord with 1 day notice to the tenant.

Why would anyone with common sense, risk all of that?

Live there, rent it to a snazzy restaurant, common area for the renters (???)

This scenario is very common with most of the properties as the owners sell at a very high rate.