Want to buy and renovate GMA's house with little money down. How?

[Jack Plantin]

My grandmother is putting her home on the market, very desirable neighborhood and a rapidly growing & family friendly city within 1 hour of Minneapolis (Rochester, MN). I've been reading about BRRRR and am thinking that her property might be a perfect place to start, due to many young families looking to rent SFHs in this city.

Some details on the home:

- It hasn't been renovated since the 1970's, but it is relatively good shape.

- It's located next to a great middle school and within 15 minutes of a major hospital where many residents of this city work. 

- Comparable homes go for around 200k (rough rough estimate).

My wife and I have 20k saved up, have very good credit scores and would be first-time home buyers. Our questions are: 

1. What kind of strategies could we take advantage of to buy her home, while utilizing our savings mostly for renovations? I have heard of "under-contract" in this podcast, but don't quite understand how it gives you an advantage compared to conventional loans.

2. Would we be approved for a conventional loan, FHA, or other first-time buyer programs if the house is relatively old and requires updates?

3. Is there anyway to ensure my Grandma and we both get a good value in this deal?

I'm sure I have way more questions, but I think this is a good start. I'm in contact with a great realtor/investor in the area that can potentially help us find similar properties if GMA's doesn't pan out.

Thanks in advance for any input!