Uninsurable Property

You want to buy a broken down old house with a caved-in roof and a society of rats colonizing most of the first floor. You want to buy the property using a loan from the Federal Housing Authority. Unfortunately, the FHA takes one look at the dump and gives you the thumbs down. It's an uninsurable property.

Because it requires such extensive repairs, the FHA refuses to issue insurance for the property. That fact also likely kills your chance at an FHA loan, though there are some exceptions to this involving alternate financing.

Hm. Maybe you could buy the property with cash and get the rats to pay rent.