I am concerned that he/she is either filing bogus small expenditures OR performing services himself/herself and making profit.

They tend to be more flexible than institutional lenders and may lend based on the equity in your property or its ARV, rather than focusing on your income or DTI.If you have any connections with investors or family/friends who are looking for safe investments, you might be able to pitch the project to them, offering them a higher interest rate than they would get in traditional investments.Advantages:More flexible terms.Negotiable interest rates and payback periods.Considerations:You’ll need to clearly outline the project’s profitability and how you will repay the loan, usually through a refinance or sale after rehab.

In the spirit of non profit you would be helping people collect this overage and NOT charging them. 

While you can't build equity through improvements, the strategy can still be profitable if the numbers align.

You could cash out refi OR sell in a year and 10-31 the profits into 2-3 more doors.

Im torn between something that is turn key with encouraging rent potential v something old that needs a lot of work but can become 2 units, however not the best neighborhoods.Lastly, but very important-  If in either scenario price jumps to $380k with 15% down does this become not as profitable?

I also can tell you that a good PM will make a bit of profit in the turn over.

I grew up in England, UK I struggled to find a profitable market and working a 9-5 job, the hassle of living on payslip to payslip had inevitably led me to venture outside the country.

I dont think first time buyers usually even know that after owing the home and living in it for 2 years any profit up to 250k for single and 500k for married is tax FREE. the absolute best tax treatment we have in the US. in Markets that dont move as much might not be the same benefit..

Also plan to sell your primary every 2 years if it has appreciated so you can maximize the up-to $250,000 tax-free profit while you are young and can move that frequently.