Short story, i bought it for $66000 and done repairs that cost me $6000(appraised at $73000 ,my morgage is [email protected]%.I payed the first mortgage with  no tenant.now I leased for $1100/months with a new tenant. 

to make a long story short, i have purchased the property in 2016 WITH the violations. seller himself has not said a thing (neither real estate agents both sides, title ....) about the violations.I have recently became familiar with those violations, and as of today it should be in COMPLAINTthank you for your advice, I am now 10X more ready towards this. 

Bottom line is in these cases, you are at their Mercy and they can deny you for whatever reasons they may have ( Boarding rooms typically are NOT desired by any neighbors as they are basically a low-end short-term hotel). 

I've run all the numbers(I live and die by the excel sheet) and here's the long story short: we could sell our properties, net some cash, put that cash down on a larger property(hopefully 2% deal like we've been doing), and cash flow 60% more than we were on our previous holdings!

I'm expecting a short term drop in prices at the beginning of 2018..Also, the $40 Billion housing project will definitely have pressure on prices

Other sources of funding are available such as private money (friends, family, etc) as well as HML but HML is generally short term, high rates meant for flipping and not buy and hold.

Long story short, I disagree with a lot of what is being said in these comments.The vast majority of part time agents treat it as a hobby, have no idea what they are doing, etc.

Since these loans are short term in nature, almost all are interest only payments.

That's short of a release of lien, but likely enough to keep him from putting a lien on our property that I suspect he was planning, given him wanting the final check written to someone else.

by helping her best you can win too.generally always borrow long and lend short.