We would do it for a 16% annual rate and $500 fee at closing. 70% LTV Borrower incurs all legal fees. 

@Menalik ArcherYou might want to listen to @Joe Fairless podcast #1054 with @Amy Wan from Bootstrap Legal for some thoughts on how to stay out of troublehttp://joefairless.com/podcast/jf1054-getting-paid...Cheers!

We have homeowner and professional references as well.

You could always find your investor another property to take his mind off of this one.At any rate, i'm just offering a couple of points, it ain't legal advice, and it's not meant to circumvent your DB, or the agencies legal team, or the state of FL.

In case it is a single member the taxes are done on your personal return.If you want a more professional treatment I suggest you contact Borders and Borders real Estate Attorneys.

Fully rented.I'd be interested in purchasing if:1) I can owner-occupy both the first and second floor apartments (the footprint is small and I'd like to turn it into a single family space)2) I can make sure the basement apartment is legally habitable.Can I even legally do this?

The lack of professionalism these days never ceases to astonish me.

Others have said that emergency money is available - I'd save your legal fees and look into actually getting paid. 

From a protect-yourself standpoint, you need to seek legal counsel on this one but here is my non-legal opinion.  

I might even hire a professional building inspector to look it over.