I think in general this has been mostly a bait and switch - first it was an insurance job, but he mis-read the insurance policy that we gave him (he basically thought it was the policy where he could make some good money), so then he revised the bid to be a "cash" job with a $1,000 limit on "unforeseen work" like extra shingle layers and redecking.

There are usually occupancy limits by the size of a unit.

I guess I just don't deal much in states or jurisdictions that require this (closing attorneys), so my comments my be of limited value.

The past owner, not the lender any more, may have a liability.

Not your concern as far as the legal stuff, although I'd want to know what the issue is in case it could have some liability for you in the future (drugs, illegal home business).

I blast market and make sure every possible detail is in the listing to limit emails back and forth. 9 times out of 10 I get it rented that weekend

I'm trying to avoid that route for now, and 25k limits me to having to purchase a mobile home near 10k, while I use the other 15k for repairs.

Will lenders lend to first time buyers with limited credit history to finance a multi-family investment property?

We spend more money on maintenance and upkeep to our buildings but it pays back dividends with limited turnover.

You believe in the project & your gen. contractor, but wan't to limit risk from a housing downturn at some point.