A community bank may allow you to go to a higher combined loan to value given that their exposure is limited to 80LTV.

What about giving them a small credit card (under $500 limit, say) as a "petty cash" account?

That makes it very painful for the lender to foreclose.Also realize that all lenders have some LTV limit.

Section 1021 allows for a tax exemption on a primary residence, but within certain time limits. - What is their tax bracket?

However, you can prepare to have the work done before you close.For instance, if you're going to be doing the work/repairs yourself, take any measurements you need and buy any supplies you'll need beforehand so that you're ready to get to work as soon as you close.

What are your thoughts on construction budget limitations?

Without a job, you're options are going to be limited.

A pool pass would be much more secure as even if you give it to a relative or friend to use, it limits the misuse to the number of passes you have.

On the other side, recognize with a SFH or condo, when you have vacancies or tenants that don't pay, the lost rents tend to hurt a lot more (especially starting out if you have limited resources and need every penny to make mortgage payments.)

Be sure to send letters within the required time limit.