Once it is stabalized and value is added you may qualify for traditional lending.  2.

It does not look like a good deal to wholesale - here's why:Average ARV is $440,00070% of that is $308,000subtract the average $8,000 needed in for kitchen repairs and the number is $300,000This tells me you'll have to buy the house for around $300,000 if you wanted to wholesale it the traditional way.Since the $300,000 is a lot less than the $395,000 it's listed for you're probably gonna have a hard time bringing down the price by around 25%

It sounds like your parents went the traditional route of investing.

Your income and cash on hand will be your most limiting factors with traditional or portfolio loans.  

It varies from state to state, but in my experience it must have a traditional closet to be considered a bedroom

Most likely cheaper to convert office space rather than rebuilding .At the same time there is the trend of less people working in traditional offices .

@Bruce Ellerd - Why not rent out the house in a traditional manner? 

Hi @Josh CaldwellI canvas financial plannersI ask them if their clients would like to sell their low equity homes on lease purchase instead of paying the traditional sales costs of selling with an agent, which saves their client sometimes as much as 9 to 12 per cent.If the sellers have no equity, they do not need to break savings plans like IRAs to use to pay the costs to sell.  

Initial cash flow can be thin but you will find lots of the traditional Boston "Triple Deckers" to consider.  

You can get financing fro banks and traditional lenders, Hard money lenders (high % rate loan based on the asset more than your credit), private lenders (friends family or associates), or owner financing (simply pay the owner over time).Generally you are going to need at least some cash if you use financing.