I have agreed to lend a friend who does fix and flips some cash for a property, with an agreement for a 10% ROI (I am lending 10k since this is my first time doing business with him, however I do trust him.)  

Some areas of the country seem to be very strict about that.  

But agree that the condition of the roof could be an issue for your lender and your potential insurance carrier.

As an agent myself I agree with you but there is just not a system everyone adopts.

@Jason Anderson while I fully agree with @Nathan Harden's comment on youtube being a great resource. 

I agree with Melanie. 

At that's the approach I took with respect to my home country of Canada when I started to invest internationally.

@Robert Finn What is normally the interest rate the two sides of a seller financing deal agree on?

I agree inflation is for sure having an effect but the sheer quantity of demand and lack of housing in the area is really what I think is driving it. 

Our rental application says it will be required upon lease signing, so they know in advance if they will agree to purchase it or not.