So what he is bringing the to the table here is strictly local knowledge (and a lot of energy).College town #2:  I have no prior knowledge of this area, but looking at some of the listings and rents, it looks like returns could range anywhere from 20-48%.  

Especially if you strictly use a service. 

I am strictly a hard money lender.

The processes I've experienced were strict/systematic, but there were aspects that differed from a normal resale transaction which I helped my clients navigate.

The biggest problem you'll find with a live in flip to meet your numbers is VA loans are pretty strict with the condition of the home so there aren't as many great deals to be had with the loan limitations. 

strictly non-legal opinion follows:This certainly is a Sticky-Wicket - - the improvements have created Sweat Equity, unless your lease specifically forbids improvements/modifications w/o written consent.You need the services of a lawyer to unwind all this and to get the "occupant" extricated.Get this done before accepting an offer. 

So its hard to go on that much of a diet.

Gino,Thanks that's very helpful, sounds like in your case they use kind of a mix between the NOI and a CMA.I was afraid of that as I'd rather them base it strictly on the numbers as I have more control over those.

Most important point to remember is this is not factual and strictly opinion based.

The MREC requires you to follow strict guidelines on many things.