It could be borrow at 5% to make 10%, higher, lower, etc, etc.Its all about managing your cash flows minimize the downside and maximize the upside.

They wanted to be a hands off, minimal risk / exposure investor.

I am hoping she can add value by making suggestions.She indicated to me that she works with investors. 

You have to look at it long term, eventually that loan will be paid off and the amount you recieve extra per door will be a good indicator how much you recieve when the asset is paid for.

I suspect/hope this is very conservative and would be closer to 20, but I'll leave it at 25k.With that and my rehab fees, hypothetically me grabbing this property at 82k, my numbers indicate this would net me about 20k in profit sans taxes. 

I'm trying to avoid/minimize/re-coop my clearing expenses.

My experience tells me that your tolerance for the unknown will indicate if you hire legal help.

.-  You indicate that you'll be building 4000 sf at $75/sf, which puts you at about $300K. 

Do whatever you can to minimize it, but also understand what *you* can control vs. what to expect from the area and the renters in your area.Best of luck!

Not sure it matters in this case, because it sounds like your gains will be minimal, if any.