But as first time home buyer, you could get into FHA loan for 5% down - so it means all you need is 20-30k for a 400 to 600k transaction (which you can borrow for 401k) but you still need to improve your income to qualify for the repayment.

Am I exposed in any way legally as a lien holder if the wholesaler/seller/buyer did something illegal in that transaction? 

Do I look for commercial buyers the same as SFR and Multi Fam investors?

If I purchase this house, am I purchasing as the buyer of the warranty deed?

My wife has an acquaintance who is looking for just about the type of home spoken of above, and she would be a cash buyer upon sale of her home which is on the market.

It’s not generally a good idea for the Seller to allow a buyer to move in early.

The following are maximum LTV/CLTV/HCLTV ratios for purchase or LCOR when HomeStyle Renovation mortgages are underwritten with DU* (note that borrowers can also qualify for up to 105% CLTV with eligible Community Seconds®):- One-unit principal residence to 97% LTV/CLTV/HCLTV with FRM; 95% with ARM (Available in DU on March 17) (Note: For LTVs > 95%, on purchase transactions, the borrower must be a first-time home buyer unless combined with HomeReady; for LCOR transactions, the loan must be owned or securitized by Fannie Mae.)- Two-unit principal residence to 85% LTV/CLTV/HCLTV with FRM/ARM- Three- and four-unit principal residence to 75% LTV/CLTV/HCLTV with FRM/ARM- One-unit second homes to 90% LTV/CLTV/HCLTV with FRM/ARM MH LTV/CLTV/HCLTV ratios principal residence to 95% FRM/ARM; second homes to 90% FRM/ARM (Note: 105% CLTV is not permitted with Community Seconds)    - One-unit investment properties: Purchase up to 85% LTV/CLTV/HCLTV with FRM/ARM LCOR up to 75% LTV/CLTV/HCLTV with FRM/ARM

However, this home is in Berkeley and I am concerned about destroying historical elements and potential added structural engineering costs that could make the house attractive to a buyer in future years, along with the opportunity cost of construction now versus getting rental income from the house in the next few months. 

What does it mean when a counteroffer says this from the listing agent: "Buyer shall be credited $10k for escrow fees and other fees."

Thanks for the info @Ron S. and @Blair Poelman I was just wondering more from a buyers perspective, mainly on what you have pointed towards @Blair Poelman .