My opinion is that this is an illegal operation.

I'm assuming the primary risk would be a law suit against you in the event of injury or death if the worker is not insured.

Apparently 9 of the units are currently occupied and per the seller occupancy goes up during the summer with some temp workers that come into the area.Per City data, average rents in Podunk USA are $572 (15% lower than the area I currently invest in).So if I accept $230k as fair, I would mortgage $172,500 (75% LTV) for a payment of $1,090 (6.5% for 30 years, is that reasonable for commercial?).

LMAO, best yet, the police said they raided it again due to a "tip" of illegal activity, so we dug, guess who's "tip" it was, OURS!!!!

I especially like the idea of finding hardworking blue collar workers as tenants.

No, is not risky as long as the guy you are hiring has liability insurance and workers compensation insurance.

Makes a big difference if you're working with folks that have liability and workers comp insurance on their employees (workers comp cost an arm and a leg for roofers).

Hello All, In my experience as a listing agent for rental apartments in a couple geographic areas, non owner-occupied landlords list out rooms to students and workers creating a shared living arrangement between several unrelated parties in a residence designated by zoning to be a single family home.

The houses have illegal additions,bad renos,high taxes,high crime,and on and on.

Don't let it bother you, not only is this un-ethical it is illegal.