The biggest challenge seems to be finding lenders that offer these loan products which is where I’m looking for help from the community with recommended lenders that serve Texas.The Fannie Mae (or Freddie Mac) options are preferred over FHA purely because of the (perhaps perceived) limit on renovation funds that the FHA option provides.

Come to think of it, though, I can't imagine why they wouldn't let me perform one just to understand how much I can offer.  

, it's still highly unlikely that an appraiser would have given value to this bathroom in any case, so we're not losing anything from an appraised value standpoint.Seller should be more than OK with it once you educate them on the fact that of all the offers they are evaluating, yours is the only one willing and able to execute a plan to close on-time, without delay, in spite of the flagrantly illegal and unpermitted bathroom.

Offering a refundable fee would have to come out of your pocket.

An offer was received that I accepted. 

You can also listen in on Rob Abasolo's Youtube channel (Rob is one of the recent Bigger Pockets host) and you will learn a lot from him.If this group offers an opportunity to invest with them or their properties, then it may be worth the price. 

This tax change could trigger even with offering contacts for those services as it could be construed as contractors.

We have offered to allow her to pay a reduced rent for the first few months as well but I am worried that may create some sort of limit on how much we can raise the rent on her in the future.

Offer aid and housing options if you're able -- don't try to profit. 

I'd like to use this to make an "all-cash" offer on a SFR, and then convert that to a conventional mortgage to pay off the HELOC.