We knew we could hire a property management company to handle everything.

I considered taking the FHA route.Since I have the project managing experience my sights were set on a two bedroom one bath that I could make a three bedroom two bath down the road.Now taking this to a business level vs personal level- that's the basic backbone of the business.I can do the drawings, have experience with the individuals that handle permitting, and the process, and then can directly reach out to subcontractors as the owner of the property to facilitate the rehab and/or addition.My own research has led me to believe that rental rates (I also have personal experience with these) and low vacancy due to over demand should prop up this model effectively. 

How would you handle replacing a roof or AC/Furnace in the first year or two?

If you're up North with a colder water table (and there for bigger temp rise), a single WH might not be able to handle all four units.

The facts and challenges are-1) The house is listed for sale on the MLS and it’s “short sale listing approved by bank” leaves no deal. 2) The first lien holder, which is a FHA loan, is for foreclosing and the sale date is set for about 3 months from now. 3) The owner died and his estranged daughter now has the right to sell. 4) The estranged daughter has zero motivation to engage in the process. 5) The lender is owed about what the houses ARV might be after $75k in renovations and carrying costs. 6) I’ve been able to connect with the attorney handling the foreclosure in the interest of pursing buying the note who reports that since it is FHA they are unable to accept a short payoff.

If there is a concern, shoot me an email or text and I will handle (unless emergency) Enjoy the prop and lets respect each other.)• SCREEN HARDDid you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

LLC May have some asset protection benefits, and may be a way to handle more than one owner, but not a necessity.

I'd be interested to hear some challenges you guys faced and how you handled them if at all possible.Thanks a lot guys!

If the agent asks, "hey can I rent this out to keep anyone from breaking into it and I'll handle the maintenance and lawn care so you don't get fined by the city?"

You'll likely want to have the expertise of an exterior contractor who can handle the whole job.