But, the price of consumer goods (in our case restaurants) just went up, so Joe can now consume less of it and has a lower standard of living.

I use American Standard toilets and haven't had any issues.I prefer luxury vinyl plank for flooring.

Curious if this is industry standard or something that will be market by market.

Standard closing documents should cover all of that. 

Duplex is residential building code so they are built to different standards. 

They may be rougher on properties than standard tenants but the cash flow potential is good, especially with a rent by room model.

This is standard in and around NYC.

Should strongly consider highering independent inspector to confirm WHAT has been done and HOW WELL it was done.4) Make sure you fully understand applicant screening standards and process. 

As long as you know how to do the math - the numbers will tell you your answer:Conventional Loan purchase - 25% down = $40,000  + $10,000 rehab + closing costs (let's estimate $10k just to have something here) - TOTAL OUT OF POCKET = $60,0000HML Purchase - Lend 75% ARV (you didn't state this but this is pretty standard - if yours doesn't offer 75% of ARV then go find a different HML) - 75% of ARV = $172,500. 

Most surface owners here make money through damage payments from the mineral owners, by leasing the property for cattle grazing, selling fresh water for oilfield operations (groundwater is tied to surface estate in TX), or building commercial facilities (man camp, RV parks, etc) depending on accessibility.