Eric M. hit the nail on the head. 

Also check with your local laws about what fees are allowed and if there is a cap on the amount.

I also have friends banking on the 10-year forgiveness plan that the current administration is fighting tooth and nail to eliminate.

@Kevin Romines already hit the nail on the head for your specific question, but in general: friends don't let friends use rocket ships to get mortgages.

@Nitin Suma  Check your local laws to see if there is a cap on how much you can raise the rent for an occupied unit. 

I think you hit the nail on the head there and have given the answer that most investors would give. $56/mo is definitely not enough cash flow, especially if it involves rehab and a refinance.

It hasn't happened yet, but at 59 yo I don't want to get nailed on gains.My QI always sends me the Instructions for Direct Deeding, Assignment of Agreement/Contract: To Buy and Sell Real Estate,  and Instructions for Tax Deferred Exchange. 

I think a big component that you can & need to nail down is cost of constructing on a site with plenty of granite.

@Christian Manhard hit the nail on the head, present a few options (just make sure they all work for you) when you sit down with the seller make sure you explain the benefits of each from their perspective as well as yours. 

You want to really nail it down, rather than "nudge," then this  should do it.