I can say from having taught classes on these loans that your contractor will be the biggest key to your success.

Your first couple deals will be important, they will set the stage for your success.

Balancing both cash flow and appreciation is key to long-term success.

Success depends on the individual.

- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.If you do all this you may still negatively cashflow each month, so make sure your income can cover and/or your cash reserves.If you do this successfully, you will learn more in 1-2 years than you would reading here on BP for 5+ years:)Good luck:)

There’s normally action items that can be implemented into your management process that are more effective. 

Any other advice on the process and flipping would be greatly appreciated! 

It seems like a win-win, especially with the simplified approval process and flexibility for multi-generational housing.

They can watch how that sponsor does what they do and learn the process off of someone else's successful experience.  

As a licensed real estate agent and contractor, I speak the language and can guide you through the process to ensure everything runs smoothly.