Since the mortgage wouldn’t be in my name, how would I be permitted to change the terms?

Hers is a duplex that they tried and were previously denied permitting to put in a third unit they had ALREADY built.

There's lots of things that can potentially go wrong, from overrunning budgets, to having trouble with permits, to finding that there is an endangered species on the property that prevents you from building at all.

Permits and impact fees are definitely higher here too. 

The deposit you are looking for will be very unlikely...foremost, CMHA won't permit it...the tenants in the program do not have the cash reserves even if it were permissible, and the programs that aid with deposit assistance have too many constraints.I think working with voucher tenants is a misconception perpetuated by people that do not have voucher tenants...I've worked with the metro housing authorities in Franklin and Fairfield counties and rented to voucher tenants for a couple years now and never had an issue.

If you add the land acquisition, planning, permitting, construction and sale, we should be near a year in LA county. 

Biking/ kayaking road trip), then found that life was kind of boring with no purpose other than recreating, and got my RE license and started helping others in order to have something to do.

However, you do need permits.

Landscaping work is permitted if improments are permanently affixed to the property. it’s similar to 203k Fha but better since is not as restrictive with what kind of repairs can be done, plus there is no HUD inspector required, which are expensive as they charge around $700-$1000 for inspection.

Chances are if the taxes really are that low there was never a building permit issued for any renovations- otherwise it probably would have been reassessed.