We'd probably have to believe it would pay us high-teens IRR, and would have to feel really confident in the sponsor's experience, construction crew, and local expertise.

You are also able to pay down the principle as is comfortable, while only the interest is "due." 2.

Slow Pay vs No Pay. 

TravisIf I'm GC'ing the project and paying subs, I usually pencil $50/sf for cosmetic rehab, $75/sf for medium rehab and $100/sf for full gut as a starting point.

Better to pay for a professional carpet cleaner and not risk carpet damage. 

Like if they were required to pay 90% of their appraised value to purchase the property at the seller’s option?

I added value to this deal by negotiating with the sellers to credit us $30,000 and to pay for all of the necessary fixes during escrow.The real value add though is in the capabilities of the property.

To succeed you have to stand out, and when guests are paying premiums to stay they deserve what they pay for. 

Can I sue them or report the agent to the ethics board and have them pay the total fees incurred due to their insincerity?

I did not have your mentality at 21.I'd say you are headed in the right direction with the strategy you are considering - househacking.You'll be able to use a low-down payment option, learn to manage properties, create systems for managing maintenance projects, have your tenants pay most or all of your mortgage,... the list goes on.There will definitely be hurdles but like you said...you'll make it work!