.- matched my anticipated monthly payment for my proposed $288k price by lowering my interest rate to 3.625% and offering to pay 3.5% (up from original 3%) of sale price towards closing costs.

The computer school I attended to start my IT career back in '78 was not accredited, but was still eligible (under legislation which has since changed) for me to get a student loan.David J Dachtera

Pull comps in the area for 3-4 family new construction to give you an idea if your proposed plan is feasible.  

@James Gilpin I assume you plan to live in one of the units since you're proposing an FHA loan (your description didn't make that clear) and will be self-managing since you'll be living there.  

Cha Yang on your proposed strategy.As I understand your approach, you will buy a property using cash from your investors.  

Feel free to shoot me a PM if you'd like me to review any other management proposals you receive.Otherwise, best of luck in finding a great manager!

I'm sure you just want to help your friend but the way you structured/proposed to do the loan would likely end up as a win (for you since you'd get the $5k) / lose (for your friend who would end up paying an exorbitant interest rate) / lose (for the lender who's really the only one taking a risk in a usurious loan situation) deal. 

You didn't mention if the home that sold for 860k was renovated or in fixer upper condition -- it makes a big difference if you're proposing to buy the house at 750k.

Adrian Luna Since you are interested in fix and flips, I propose the following action plan.

I'll be giving a lot of thought to the questions you proposed.