In the past I pretty much did the traditional buy/sell deal, but not exposed to the creative side of REI.Initially I am targeting about $10K/month in income so I can fully devote my time in REI.Currently looking for a Mentor that would guide me through the initial stages of REI.

Sounds like a terrible plan to me, unless you think you're going to spend significantly more time there than your post indicates or the expenses of alternative local living arrangements outweighs this cost of owning this unit.The way I see it, your plan hinges on market appreciation, which may or may not come.

If they do lend on ARV, they will probably have a third party inspecting the work and disbursing the funds in stages as work is completed.

@Jessie Wells I am curious if you have talked into local rental companies that do annual guaranteed Airbnb/vacation rental income arrangements with property owners in Austin.  

My standing orders are to spend no more money (because investor 1 needs to approve big expenses) with the option to cancel the original agreement and buy out the house for cash.Big issues outstanding: $2-3k driveway asphalt replacement, $2-6k HVAC repair or replacement, $1-3k plumbing and gas line permitting issues, $1k in washer and dryer appliances (assuming we install any), 1-2k in misc cosmetics (landscaping, staging etc.)WHAT WOULD YOU DO?

We are able to do the deal with cash, including renovation costs, using a Tenancy in Common arrangement.

One example is: you can get a construction loan which gives you the purchase price and renovation costs rolled into a 13 month commercial loan with 20-25% down and interest only payments during the renovation stage or up to the full 13 months if you want to save and build some of the cash flow offline for your next purchase. 

Use the resources at your disposal (VA, FHA house hacking, 203K, all of them) and be flexible in your living arrangements.  

If so what is their arrangement with the landlord?

Are there any creative strategies to lease/option arrangements with the seller?