I agree with Jason - there has to be enough skin in the game to bait an investor - BUT also remember that depreciation provides a paper loss that shelters rental income from taxes, boosting after-tax cash flow.

We have had the same situation both at an existing house and we even built a brand new house for a group home for mentally challenged adults. 

If the updates boost value enough, he may qualify for PMI removal or a refinance that both lowers the rate and knocks out PMI.

Guaranteed monthly income from the resident but also boosts the value of the property (in case you want to refi/get a loan in the future)....Let me know if youd want to dive into that type of discussion

You can even try STR and MTR to boost your cashflow.

Main benefits to 20% down are:- you're more likely to cashflow - the loan may be easier to obtain and can close faster than FHA- sellers can be more intrigued by higher down payment offersMain benefits to lower down payment househacking:- start building equity sooner vs. waiting to boost savings- could get a lower interest rate - lower loan requirements vs. conventional*Speak with a lender to confirm best options for your situation and future goalsAll the best!

Talking to a good mortgage broker now will help you understand what you’ll qualify for, how much you need to save, and what steps (like boosting income or credit) will make the process MUCH more smoother when you’re ready.Lastly, practice the numbers before you buy.

For me, they can be a great way to boost cashflow if the numbers pencil out, but they also come with more moving parts like seasonality, local regulations, and guest turnover.

Hard money rehab could boost your sale, but adds cost and risk if speed and simplicity are your priority, as-is is probably the way to go.

We have experience buying on/off market a few years ago, but tails winds were boosting investor returns.