I am considering a pre-fab tiny home as that speeds the process up even more and there's a lot of demand for that type of rental in my area. 

Snow so we Airbnb it as a ski pad during the ski season (late November to April 1st) and during the off-season we rent it out to traveling nurses on 3 month contracts What made you interested in investing in this type of deal?

Why would a property be in Pre-foreclosure with no mortgage?

It can be stressful especially if it has an APR higher then 0%, but you need to evaluate what makes sense in your situation.

I actually have a zoom call with a lender tomorrow for a pre-approval.

You’re:Receiving VA compensation for a service-connected disability, orEligible to receive VA compensation for a service-connected disability, but you’re receiving retirement or active-duty pay instead, orThe surviving spouse of a Veteran who died in service or from a service-connected disability, or who was totally disabled, and you're receiving Dependency and Indemnity Compensation (DIC), orA service member with a proposed or memorandum rating, before the loan closing date, saying you're eligible to get compensation because of a pre-discharge claim, orA service member on active duty who before or on the loan closing date provides evidence of having received the Purple HeartYou may be eligible for a refund of the VA funding fee if you're later awarded VA compensation for a service-connected disability.

The guests will be grateful they wont have to wait for a hot shower after a day of skiing (or on the beach in HI). 

Yes, just be sure to check your loan terms for a pre-payment penalty.

Purchase Price of $223kInvestor loan cost (8%apr  + 3k cost of loan) = $7500(all cost of loan paid at the sale of flip)Cash in- $40k(this is total out of pocket for my friend and I)Sale Price $330kClosing Contribution - $5k Stips - $1000Agent Commission 3%- $9900Cash Out - 83,600I guess that would be ROI on 109% on about 3 months....????

We already got a pre-approval for 470k, we have been looking for the past 4 months and all the offers we have made have been rejected.