I cannot answer as to what the rules/laws are in Denver, but adjusting the rental rate based on number of occupants sounds like a violation of the Fair Housing Act.

I would imagine that the interest rate that you obtained from a hard money lender would be fairly high.

Your family member could also provide the financing on it and make money every month with a positive cash flow spread between the debt and the rent collected or be like a guarantee person that is the main backer for the long term loan your Bank or other lender that  owns that property with a long term loan with that property  on a security  loan until that loan is paid off.Not saying the fix up budget makes this decision fairly difficult but i would say to not have a house that needs over $5,000 on the "make ready" expense to make a 20% gross return giving a cost price and sales price you gave on your example.What you could do to find a deal is pretty limitless. 

Part of my contingency is seeing the rent roll over several years, and ensuring things are up to code.They haven’t explained why they can’t provide but the selling agent said they will have a hard time because it a mom and pop shop

Once I get back stateside I will walk through my LLC with a professional to ensure everything is in order, but I was able to set my LLC, purchase my domain (if I ever want to make a website), acquire my EIN, open my business checking account (NFCU if you have an account or can get one) and get approved for a credit card and a CLOC to start building business credit for it...all from a distance. 

Might be able to get your tenants to sign a multi-year deal to ensure it happens.

A percentage of estimated construction cost is fairly standard.

It’s fairly common for me to be asked what I’m willing to pay over the the phone.

Renters insurance is fairly inexpensive in most parts of the country costing something in the neighborhood of $10 to $25 per month (some big cities can be expensive).

I'm completely open to the idea of having a location in an "up and coming" neighborhood, but at the same time want to be in an area that I'll enjoy living in on the weekends that's fairly walkable and will be able to commute to work (west suburbs) fairly easily.I've met many people whom have stated multi-units were the way to their success.