If you see something substantial you disagree with (for instance, homeowners are allowed to keep only one pet, instead of two -- and you have two), don't hope for the best and buy anyway.

For instance, you take a $20k loan and invest in real estate.

LOL... not sure were AL stands on that one.My guys and gals work to hard to have these deals be squirely they just want to close and resell.. this is perfectly legal in all instances and really takes the pain of this wholesaling model away.

Clearly they are both liable, they both get the certificate of rent paid (divided equally between all tenants on lease in MN at least), but is it a good practice to calculate all tenants incomes in this instance to determine if things do hit the fan that either of them can support the rent, or just go off gross income and hope they live happily ever after?

In this instance, would the whole house need to be re-painted?  

(For instance, the project we hosted our last meetup at had the permitting process only take about half the length of the norm; solely because of the engineer they used)Keep in mind that I'm not at all saying the estimates you were provided drastically vary either way from what you should normally expect to see; but I do think that if there is any one part of the project that it could behoove you to get at least a second opinion on, its the civil engineering aspect.2.

@Bryan Otteson  I fully understand your point and its valid .. unfortunately for me I had to deal with 100 plus of these type homes personally.. the tenants are un manageable in most instances.  

Prior to these sites emerging to dominance, I wouldn't have gotten near a VR with a ten foot poll; with this new platform, though, it can be incredibly rewarding if executed correctly and something I help interested clients to pursue.As Justin said, how selective you are in the neighborhoods you choose to invest in (AKA: being very thorough with your due diligence and making sure to avoid the neighborhoods where people are likely to take issue with short term rentals operating in their back yard and attempting to make formal changes to legislation) will go a long way in dictating the success you have.For instance, Del Mar just recently put a temporary stop to any new short term rentals operating in the  Zip Code and are currently 'sorting out' the 'unclear verbiage' regarding short term rentals in their municipal code.

And why I should pass on SFHs with strong Total Return and ROI just because the COC, for instance, could be low or even slightly negative?

Where you mention trustee and auction, I am assuming this property was a foreclosure...that is one of the instances where I do get title insurance.