Rental vacancy rates are under 1% right now causing a huge increase in rents.

You don't have to drive an hour away or take the call at 8pm or deal with whatever inconvenience it causes.

Simply put, you are not WRAPING or SELLER FINANCING the property from the owner because that may cause issues with the Due On Sale Clause.

I suggest clearly defined roles, detailed responsibility, including actions in cause of any contingency.  

Hud or the FSM does not investigate further as to the cause of the issue.  

@Dan ArcaroSpeaking from experience, I don't think it's a cause of concern.

However, it is very common to find a property that has lost a zone or two because something over the years has caused a break in the circuit of heating wire that is ran in the ceiling. 

Any time after the warranty is up and it breaks, throw it away and start again.I also remove garbage disposals in my units because they cause too many problems.

Maybe if I do a plex with an FHA Loan for my first deal, buy below market value, have some built in equity, do the owner occupied thing, rent the other side out, live in it for a year, do a cash out refi after that year is up, and hopefully I'll have some credit built up by then cause currently I have no credit history. 

I doubt he will try to pass hurtful things as it would harm him as well.