Does he needs to provide insurance for his employees?

You can pay points to get lower interest rates with > 20% down no insurance.

.- Get the most expensive insurance policy your carrier offers, since you will be paying the first 12 months upfront.

A few things to keep in mind when owning the property and allowing this is to cover yourself with the right insurance.

Here are some preliminary numbers I ran: 260K FHA no repairs and current rents on left, 300K 203K, reno and higher rents on right: % Down Payment 5.00% 5.00% Down Payment $13,000 $15,000 Remainder of closing costs $3,000.00 $3,000.00 Total Due at Signing $16,000 $18,000            Mortgage Rate 4.60% 4.60% Length of Mortgage in years 30 30 Monthly Mortgage payment $1,266.00 $1,461.00 Taxes $386.00 $445.00 Sewer and Water $50.00 $50.00 Trash $50.00 $50.00 Heat/Utilities $ - $ - PMI $ 180.00 $ 208.00 Cap Ex and Ops $200.00 $200.00 Insurance $65.00 $75.00 Mgmt Fee $165.00 $165.00 Vacancy $132.00 $132.00 Total Expenses $2,494.00 $2,786.00     Unit 1 $500.00 $700.00 Unit 2 $900.00 $1,100.00     Total Revenue $1,400.00 $1,800.00     Cashflow/month ($1,094.00) ($986.00) Cashflow/year ($13,128.00) ($11,832.00) Cash on Cash Return -8.42% -6.57% I have not talked with the seller in detail yet, as I want to see if this is worth a deeper dive first. 

In addition, I would strongly recommend requiring renter's insurance for your tenants.

Tax liens as you get farther out east are more complicated than West coast tax liens that are fairly easy to understand and cut and dry.my sense of this is you have the right to pay the tax's and add it to your note balance.. just like if they did not pay insurance..I suspect you do have a Alienation clause in your mortgage as its pretty standard verbiage in most.but you have multiple events of default going on here.. so you can start at anytime I would thinklastly I think at least in many east coast states or counties to clear title they need a court action.. and at that time you would also be notified and be able as the lender to cure.. 

Always good for everyone to hear of these types of situations and to insure that when evaluating the deals, to understand a good reserve/LOC is required for just such instances. 

*****I DONT THINK SO - MEDICAID Is going to ask where the house went - maybe they dont catch it right away but they will - *** family didnt appear to do any estate planning - they will need to spend that money on her careThe way I can put it if the family is wanting to get out of paying - and they think spending $3-6k or whatever amount is needed for her care is too much then they need to factor in 24/7 care at $12/hr + 15% for taxes, food, utilities, rent, insurance, outside upkeep, maintenance etc and add that up for a month and they will see what a bargain ALF can be

Pretty sure you cannot write off utilities and insurance since it is your residence (you could if it were a true flip).