This has been a common practice for many homes lately. 

I notate the story may not have illustrated how that all came to be in real life but that is not a common way for that loan to be made.  

I don't know who is out overpaying around here, but it seems like a rent to price ratio of 0.5 - 1.0% is common for anything on the MLS.  

Let me know if I can help you at all, zoning is very strict, and everyone outside of central florida will tell you to get a multi-family.. but.. as you can tell from growing up here, that's NOT very common at all.

Going off site is a common way to get scammed, but not always. 

A more common and practical approach would be to calculate your return on equity. 

This is common when unrelated people share rentals, I suggest if you want the loan you get the information.

Investors love lower income areas.Its not because they want to fix and flip but rather to rent for positive cash flow.The turnover rates are high, so inventory is always there and 15% ROI or better is common.

Check FIRST if rentals for the area it is common to include utilities in the rent charged per month.If all landlords are doing it then you can waste money separating out as the tenants will move down the street.If landlords separate out utilities and is common for the area then move to the next step.

No one wants to brag they lost thousands but believe me it happens all too common.