I want to use as much loan as I can deploy.I'm estimating $100k for material & labor for down payment for a build but less for a rehab.

If the selection of a cap rate is done poorly, it could have a material impact on the calculated sales price.

How material does their involvement have to be?

Everyone wants the easy, simple answer to how they get Foreclosed properties, but the truth is, it takes time, energy, research, networking, studying, money for advertising/gas/marketing materials, etc., and most importantly, persistence! 

I have been reading a ton of material (including Bigger Pockets books!)

Do you want to just shadow some active investor/developer to learn what they do (help them with spreadsheets, or pricing materials/labor, or maybe befriend a real estate agent to help them as a volunteer.  

This is refundable to them provided that their pets do not provide cause any damage to my home.2) I only allow one pet and I require them to upload a photo of their pet at the time of their rental application to protect against any changes.3) This one isn't necessarily a guideline, but a practice I implemented: I have tenant-proof AND pet-proof materials in my rental such as luxury vinyl flooring, quality tile, and furnishings that can withstand pet accidents.I am also considering charging pet rent, but it is a mere thought at this point.

(Only 25% of our ad-driven web traffic comes from Craigs List) We post our homes on around 50 websites.

(technically, they have up until the 15th day of the 4th month of when they last furnished materials or labor)   So, you do not want to buy a bunch of liens. 

Extrapolating that to today, the trillion dollar bailout/stimulus/giveaway/whatever you want to call it is being driven by massive unemployment, so I would conclude risk of inflation is low to moderate.