We're adding a master bedroom, enclosing a patio and adding a mother in law suite.We obviously want to keep costs low and I feel a bit ignorant about the process.  

We were barely getting by...macaroni and cheese and overdraft protection on our checking account were our two best friends.Around that time my mother had no place to live and found her way to our couch along with my two much younger sisters. 

The house is owned by a young woman and her mother.

Might take out one kitchen, then again, I have seen two kitchens in several older homes as they were converted as a mother-in-law quarters.

The mother in law passed away and the father in law had to go into a nursing home.

at an 80% ARV if they can roll the closing costs and some interest payments into that loan it will make it even sweeter.i would only think that since this lender offers traditional financing as well, make sure to scrutinize their qualifying standards since they could be more strict w/your documentation.i only choose to talk to a few select people close to me of my REI goals so i do not have to constantly hear about their "good advice" - my mother is supportive, but since she has no idea how any of this works, she would have a heart attack if i explained i was doing a rehab on a busted property and borrowing at 15%.

He pays HOA $100 Per MonthWas renting it out to his mother in law and he was subsiding some of the mortgage payments.

I mentioned in a post earlier that we are in the process of re-financing our house to get 10k equity out for starting capital to get back into REI and have a relative that is willing to 'loan'/'invest' around 20k.The relative is my mother-in-law.

You also have a wonderful resource that your mother is a realtor and probably has great expertise in helping you find some strong cash-flowing rental properties, and if she is willing to manage these properties at no or little cost that will help out tremendously.It sounds like your next steps are to continue learning and doing research and getting ready to take action when the opportunity arises.

Investing $1M in your example would be throwing off about $100K/yr or $8,333/mo.  There