The tenants themselves are not responsible (technically) for the mess they make.That being said, you can speak with the agency and explain you will take care of health and safety issues. 

@Tricia Miller One of you would have to be primary owner...FHA is pretty technical, but its the cheapest way for non-military folks to get into a 1-4 unit property.

@Robert ZabelYou can buy them at sites like getrefm I think they may be $500-$1000+ but these calculators are very sophisticated.

He is interested in selling it to me, and I even brought up seller financing, because he owns it free and clear and doesn't need the money.Anyways, the property is identical on both sides, 2 bed/1 bath, however the basements are large and it wouldn't be difficult or expensive to add a good sized bedroom with a large closet and attached bathroom, it would technically be the master. 

Technically that risks triggering the due on sale clause, but I've not heard that actually being a big risk.Alternatively, and what I have done, is buy the property in my name, get great insurance, hire a good property manager who runs the property fairly and legally, and then get an umbrella insurance policy for additional liability coverage.

From what I have seen, the multi-unit is a safer option because I have two + units as opposed to technically only one.

You need to study more.Now if you mean they are giving you 30 days to close the sale then if you don't close technically your deposit can be at risk but usually, you ask for an extension of time. 

I dont say lender because we  only JV but we bring the type of capital your talking about.so private capital that is sophisticated enough to go into spec building is not going to be any cheaper than HML and could very well be more.It can take some time to find banks that will play but it can happen as they are getting back into the game.If you have the three C s and track record I would be pounding on every small commerical bank in the Vegas area.But franklyright now bank rates for  me are 6.5 and 1  no junk fees just appraisal and I only have to appraise one model if its going in the same community. 

They were probably just hoping you would not be sophisticated enough to call their bluff and are trying to scare/blackmail/extort you into paying their ransom fee (and randomized the number to make it sound more official).

@Sinil KimBusiness skills are more important than technical skills in real estate or any other business.