The cost difference is something you'll have to run the numbers for between a new build and rehabbing an existing property.

There would be closing costs involved, so as @Ray Hage mentioned, a price reduction may suit you better.

Unless you can convince the lender to do a seriously low short sale, I'd take a hard pass on your relative's problem.  

@Deborah Lee these range from free to various costs, depending on the features you want:Doorloop, Hemlane, Innago, RentRedi, Stessa, Avail, Apartments.com, TenantCloud, TurboTenant, Buildium

To me the cost of note servicing seems cheap compared to missing out on even one good deal per year.

These people are the lowest of low. 

Holding Costs, what are taxes, are there agriculture exemptions.5.

This allows you to finance the loan's closing costs, which will reduce your total upfront cost.

The conventional loan product can help eliminate sellers concerns while still keeping a low down payment.3) I would just compare your rents versus market rents.

Tahoe continues to grow as a tourist destination and the low taxes, landlord friendly make it an ideal investment area.