If you're looking for all the differences between the 6 types of renovation loans (Limited 203k, Standard 203k, Homestyle, ChoiceRenovation, VA, and USDA), you're best to use the internet or have a 1-2 hour conversation/meeting with me or an experienced renovation lender. 

Reduced loan limits for investors might force many to seek alternative financing.

With a very high costs are so many are stretched to the limit.

Additionally, if he’s legally and financially tied to the property, it might limit his flexibility if he wants to make major life changes, like moving or starting his own investment ventures.Ultimately, the decision depends on how involved you want him to be in the financial side of the property and how much risk he’s willing to take. 

Michael - The 6,000 SF refers to the land size limitation.

I didn't have enough space in the Title:Novations where the investor uses a Limited Listing that puts them as the primary contact for scheduling showings, receiving/accepting offers and negotiating are brokering without a license.Novations where the investor actually hires a real estate broker to handle the aforementioned for the seller are not included. 

As Nick said, just confirm prepayment penalties for your loan type in case you want to refinance.In IL, duration of prepayment penalty is limited so the penalty can be higher at times

If the index underperforms—or if caps and participation rates limit returns—you might not get the growth you expected.4.

But he has clear advantage of getting much larger deposit (landlord in most jurisdictions is limited to collecting 1.5 or 2 months' rent payment, which he must place in an escrow vs. $8000-$10000 Scott can collect and use for any purpose the next day). 

We get calls from newer investors often that have just bought a property in a flood zone that they want to rehab, but had no idea that the rehab was limited.