You can do what you describe @Marcus Green, renting out by the room or putting up extra walls to create rooms, basically house hacking on crack.

Look for soft spots, cracks, holes.

The tenants are ok with everything as is but I am concerned with the wonky floors in a couple of places (newer floating floor actually has cracks in it at a high point in floor) and the roof isn’t exactly straight but has new shingles so may be ok.

.** Purchase & Rehab **Purchase Price: $85,000After Repair Value: $110,000 (the tax assessment was even higher then this but hoping to refi and pull as much equity out as possible, unsure of how the city and bank assess the property and if it's different though, I need to look into it more)Purchase Costs: $2,550Rehab Costs: $2,200Down Payment: $17,000Total Cash Needed: $21,750** Financing **Loan Amount: $68,000Loan to Value (LTV): 80%Loan Term: 30 YearsInterest Rate: 3.75%Monthly Payment: $315** Cash Flow (Monthly) **Rent: $1,250   (possibly more this is on the low end for 3 bedrooms, and even lower for a stand alone house, but trying to be conservative in that the house is on a really small plot of land and has a cliff on 1 side)Vacancy: -$63 (5%)Expenses: -$339 (28.6%)NOI: $848Mortgage Payment: -$315Cash Flow: $533** Returns & Ratios **Cap Rate (Purchase Price): 12%Cap Rate (Market Value): 9.3%Cash on Cash Return: 29.4%Return on Equity: 14.2%Return on Investment: 105%Internal Rate of Return: 105%Rent to Value: 1.5%Gross Rent Multiplier: 5.7Debt Coverage Ratio: 2.7I had budgeted for 6k for renovations but realistically it probably only needs 2k, it's basically perfect the way it is right now just a tiny bit dated in that it has oak cabinets and wood grain molding.

Between that and your tiny vacancy rate I think this deal could die on the vine.

So I post my RVL as a great home base for tiny cabins or converted vans. 

One is that when there is a failure of some sort, like heaving, cracking, etc - it's systemic in nature and affects how it looks and also makes the structure compromised. 

I don’t know if they’ll ever move out  I’ve heard that some small multi went vacant but that’s a tiny tiny market in Vegas. 

Those appraisers do a very detailed inspection and will fail a property for even small amounts of peeling paint, cracked windows, wobbly handrails, crumbly cement steps - and I even had one fail last week for the pipe on the pressure relief valve on the water heater not being 6" from the cellar floor.  

It's probably going to crack again any way.