So long as it conforms to the loan guidelines, put the clause "Seller is to contribute X dollars towards Buyer's pre-paids and closing costs," and then negotiate a higher sales price so the seller nets the same amount, but you basically wrapped the costs into the loan. 

If your intentions are to flip real estate - the only money you need is for advertising your controlled property (to find the deal and to liquidate it)- that should be no more than $2,000, maybe $100 consideration on your contract.......Unless you are going to go to settlement first and than flip the real estate paying unreasonable transaction costs.Do you have the needed skills to accomplish what you want to do -- like it or not - flipping houses has a bunch of moving parts -Power prospecting - where are you going to get your leadsNegotiating - do you know how to control propertiesHybrid offers and joint ventures with sellersUnderstanding contracts is important - will you use a long form or a skinny contractAssignment clauses - will your agreement have all the property and self-serving clauses in it.Built-in extensionsFind the assignee and closing the deal - do you know what the proper procedures are - will you collect your assignment fee in advance of closingAre you ready with the what if (s)the assignee backs out and wants his money backthe seller won't come to settlementthe seller wants out or wants more money - he is angry because you made too much moneythe title company will not cooperate because you don't have legal titleauction - will you flip your transaction using the auction methodan agent wants a feethe seller accuses you of operating as an agent without a license you run out of time on your contract, you are in default - the assignee wants to sue you for misrepresentation there is a fire before settlementyour forms; contracts - assignment - disclosures - required by law are not in order - can you defend your positionif you go into a deal and spend $5,000 and it won't close due to judgments the seller forgot to tell you about - what nowSorry for all the negative What if's........ but we are dealing with people - they are complicated sometimes - unreasonable - and litigious most of the time.So be aware - flipping houses, commercial properties, businesses with real estate and non-conforming real estate is not as easy as some would have you believe ---Money - is not the answer -------- systems - techniques - formulas - negotiations and education is!

Even real estate, with the changes in federal law such as Dodd-Frank, has challenges and must be dealt with to conform to requirements.

With regards to renting out unpermitted space or non-conforming use of the property, that is a matter of local codes & zoning laws....and probably not a good idea.

Sounds good to me - if you refer properties to me and can confirm that there is lots of equity and you have some sort of written control in it, I will write an offer - the offer will be subject to me assigning my contract to another within our contract time period and will be all cash -plus your fee.I do these sorts of contract weekly and would be glad to do business with you provided you are skilled enough to find really motivated sellers; residential - commercial, land or non-conforming properties.Charles

I do not drink, goto clubs or bars, I pretty much woke up early on in life not to conform to the "lifestyle" that most people do.

Hello, My understanding is that with a conforming loan she may be asked to sign documents that this is going to be her primary residence.

Or do you mean conforming Fannie/ Freddie non-VA loans (commercial with 20% down is rare)c) there is no seasoning requirement to refi out of hard money except with certain lenders, so find another lenderd) as Martin mentioned you can partner with other investors but partnerships can be a painHappy to discuss further offline.  

This time I'm planning to legally convert to a duplex, rather than going with legal, non-conforming.  

And periodically inspect all of your portfolio to make sure they are conforming to your goals and model.