You will then come out of pocket again when you stroke that 40K check to the IRS (and where will that cash come from?)

Ideally you could completely renovate the whole thing and start over but that would obviously depend on your budget.   

I know I will find someone in the Toronto area and that would be most ideal for all parties.

I can't offer an opinion on this strategy but would consider it the least ideal way for you to buy.

The stronger the borrowers ' personal cash flow is then the easier it is for the bank to accept less than ideal cash flow for the property.As for the LTV of the property, typical guideline is 80%.

If their position replicates mine, they can still be good for partnership, but are more likely to be steering their own ship.2) Track Record: Ideally a track record in whatever they are selling.

Ideally I would image we would try to compare them to other multi-family homes for sale in the area, but if there are none and we have to go by single family home values, how do we evaluate whether or not the multifamily unit is a good deal or not? 

You'll see high levels of unemployment and some crime, and will attract a much lower class tenant.Stay away from F.I typically try to invest in B to C class neighborhoods, and ideally I like to find a C class property (needs updates and repairs) in a B class neighborhood, but that's personal preference and it all depends on how much work you want to put into the place.All that being said, I'm definitely a multifamily guy myself, but you do tend to get higher turnover and more tenant issues with multifamily properties, and they are more likely to call you to fix every little thing than someone renting a SFH.  

so it is true a lot of the idealization of the Tiny house is largely economically specious. 

Ideally, I'd like a 30-year fixed mortgage at a rate around 5%.THANKSThank you, mahalo, gracias, and obrigado in advance for your help.