PS - Fidelity Bank had some decent loan products in GA, as did a small outfit called Movement mortgage.

Some local lenders I recommend are:Jim Schmid with Movement MortgageRhett Lahey with Atlantic Coast Mortgage

We had a cash buyer offer 32k, the main beneficiary declined because the realtor was going for at least 49k at that time.  2 years later.... no movement. 

I have spoken with her, as I think this is a terrible idea considering we live in NYC, land of perpetual renters.

In all likelihood you'll have a higher NPV from renting in perpetuity but worth checking out depending on where you think the market might be headed.

At Movement, we call it "Upfront Underwriting" and a few lenders have something similar.

"The profit is not a return on your investment (loan) as it is earnings from labor and construction fees."6% is the interest received on the loan, however you are missing the $125k recieved for a $90k investment.In an IRR calc it is all cash movements... 90k out, 1k in per week (return of capital invested + interest + additional capital from buyer).

Some of the best rates, products and programs are coming out of non-bank lenders like Movement Mortgage.Ask some Realtors you know in the area you're trying to buy who the best lenders are and then interview 3 or 4 of them. 

Insurance being $125/mo more than expected is about $25k in purchase price worth of DTI movement.

Just keeping a good record of the cash movements is fine.