Not sure how existing tenants would affect reviews or if that is risky.  

Last comment on the owner occ side of this is that with reset values and super low interest rates I suspect in median price range of owner occs in much of the country their mortgage payments and all in is LESS than market rents today.Other risk is rents going down.  

Not sure how existing tenants would affect reviews or if that is risky.

This is fine for experienced investors, but is a pretty risky way to do business if you aren't great at estimating repairs and don't have a contractor willing to do a very thorough walk through with you.You can certainly get some great deals from the best wholesalers, but don't assume that just because it's coming from a wholesaler that it is a great deal.

Does anyone have any insight on areas that have charming homes that need a little love but aren't in risky areas?

This is risky but I did a house hack for my first purchase.

My last proposition to her was to pay her some cash for each book she reads and now she is kind of considering it ;).

However, if you mean your private lender is just going to give you the money directly without it being secured by the property or well-documented, well that must be a pretty good friend of yours and the added risk he's taking on by doing that must be worth a few extra percentage points because that's a very risky way to make a loan.  

Maybe you can find those CoC returns  deals in small tertiary markets where there is more risk.  I

So, yes, the cap rates should be higher because the risk is going to be higher, but I'm not sure a 15 cap is extremely realistic, but get your numbers airtight and find out for yourself.