I'm assuming in the situation described in h. that you will have some turnover/rehab costs or do you just sell it as-is again?

@Hunter WilsonYou are not able to use a VA loan on an investment property, which is what you are describing.

This is the background.This paragraph describes the problem that I need help with.

You can describe how you intend to finance XYZ deal and see what they think.

We had a tenant similar to what you described and were in this same predicament. 

I can't seem to find a post that describes a general process for private lending. 

Traditionally banks loan on appraised or purchase, whichever is lower...you may be describing a hard money lender...that's a different ballgame altogether...It's impossible (in 99.999%) of all real estate acquisitions to use financing and acquire a property with no money out of pocket...best you could do is HML if you're flipping this...you may scrape by with points and fees...If you're using HML you will have to sell the property or settle the debt with a re-finance...re-fi's are typically 70% LTV...and completely dependent upon your personal financial situation, DTI...easy to get burned if you don't have capacity or the value is not there...and this is an expensive asset.A conventional lender can't lend if seller financing is involved...lending constraints...

Please note that the empty lot next to the house belongs to the house on the corner, and is not part of the property I will be selling.I will describe the house from the top floor down.

I had looked into Suntrust online before, and the terms you describe sound great, but it didn't seem like there was an interest-only option. 

Otherwise let sleeping dogs lie.As far as his concerns about only seeing the worst in people he is 100% correct. 10% of tenants are exactly as he describes.