It makes sense he's in front of me, if I get hit by the beer truck he gets the house.My question is this. 

If so, you should be able to get 10% down of total costs (purchase price + rehab budget) pricing is usually based on experience. 7.5%-9.5% w 1-2 points for experienced investors, 10%-11.5% w 2-3 points for newer investors.

:)Depends on what you want to accomplish and your budget.

The latter list are usually expensive, time-consuming, and if you estimate wrong can put a project way over budget. 

Just concentrate now on making a budget, analyzing your expenses, and saving as much as possible. 

Repair budget seems way to low especially for a deal of this size. 

With this loan, you can finance the purchase of the property and the renovation budget up to 110% of the ARV.

And if you do ruin the relationship, it can ruin it between you and the stepson, as well as with many other family members.It also looks like you're trying to buy a rental that works for his budget, not one that makes sense for you as an investor.

When you begin creating a budget for the renovation phase, add an additional 10% as a buffer.

Then they wonder why their project shows $3,000 - $5,000 over budget after they've counted up all their remodeling expenses.