I would cover myself by making the offer contingent on property inspection.

Amfam says they will give me a HO5 and State Farm says their broad form is better than HO5 and will cover everything?

And if you intend to occupy one of the units, 100% of rents collected may be used to offset mortgage payment, thus reducing your DTIFannie Mae Selling Guide - B3-3.1-08: Rental Income (02/28/2017)[If a borrower has a history of renting the subject or another property, generally the rental income will be reported on IRS Form 1040, Schedule E of the borrower’s personal tax returns or on Rental Real Estate Income and Expenses of a Partnership or an S Corporation form (IRS Form 8825) of a business tax return.

If I go to the sheriff sale at the courthouse and bid $120K, does this go towards covering all of the liens in order of priority with the lowest priority lien-holder left taking the loss?

@Zaki Kaddoura as a renowned historian, known far and wide for my mad skills in knowing all the things about "the stuff", I would like to address your questions so that there can be no further confusion on the subject.

Fortunately for me the bank eventually listened to reason.I do not consider myself a subject matter expert nor do I pretend to know all the best ways to solve these problems.

The rents don’t seem to come close to covering mortgage and taxes (holy sh** taxes are high), let alone all of the other costs.

Look forward to learning more and to contribute to this awesome community.Thanks,RomelHi Romel, pleased to meet you.Decide which kind of investor you want to be (SFR, Commercial, Land, Tax Liens, Passive, HML, Multi-Family, Notes, Fix & Flip, Buy & Hold, “Subject To”, apartments, duplexes, assisted living, REOs, Foreclosures, Short Sales), etc.

Most investors don't do this, they only factor in a percentage for CapEx but this doesn't cover the rehab over a 30+ year hold, the CapEx is only covering things like HVAC, roofing, etc... at the end of the 30+ long-term buy-and -hold most of these properties will have a negative or very low IRR.

Juat be aware that your e&o insurance will likely not cover you for transactions to which you are a principal.