There are a lot of possible issues you really need to consider and explore if you want to proceed with both of your  proposals. 

No you don't need "a standard renter" but Underwriter is not going to use proposed income from STR to qualify.

The proposal is my FHA, and 50/50 on the down payment.

Currently writing a proposal on a great flip in Tennessee, and in search of funding.

Let's just say this wouldn't be a particularly attractive proposal to me as an investor.

Getting your first rehab project will require you to create a SOW, talk to contractors, compare and review bid proposals, review budgets, & make countless trips to Home Depot.​You will inevitably make mistakes and underestimate things, but you will learn 90% of what you know by just doing your first rehab!

@David M.You essentially propose a P&S agreement as well as an assignment contract, I live in TX.

I have contacts who I'd like to talk about a potential capital/sweat equity partnership with, however, I would like to be as well-researched as possible before I do so.I'm wondering: how rational is it to propose a capital/sweat equity partnership for a multifamily, where the sweat would initially occupy a unit?

@Theresa HarrisI was to propose they see if they have a place but i wouldn’t know why her would take her on and continue to deal with her.

@Mark Vesu  Spending on the upgrades may do at least two things: 1) higher rents (currently coming back from being down 14-16% in SJ this past year)2) better tenantsCompare properties on the market with and without your proposed upgrades.