If Bill turns out to be a crazy person and causes major damage that is beyond the security deposit, Jane can go after you for it. 

Best case scenario ARV 110k purchase 63kclosing costs 2kreno cost 20kCash out refi as 75% has me at 82.5k. so we'd be in the right neighborhood.I'm a little concerned if our reno ends up at 25 and ARV is only 105k, we would be left with 11k in the budget.Is this to close to call?

First propertySmall multi familyNeeding some renovation Wanting low-to-no money down  Third Question:  If hard money lending is a good option for this -- what are the draw backs and what should I be concerned about moving forward with a HM lender?

I'd be concerned about being the first few builders to bring a finished product to market since who's going to want to buy and live in a construction zone.

That caused me to step away and rejoin the "Rat Race". 

During inspection noticed cracks in the driveways and after further investigating found roots causing the cracks and were going into foundation..My main concern was roots damaging pipes before having that issue I had tree removed.Honestly I have no idea how big are Cherry Trees and how are the roots.

I hardly suspect that is what's causing your issue.

You can talk to a private investor, but not sure I see a big enough profit in your deal to take it on.Start living like no one else does, get a second job or a better job, so you can save $20-30K and you can make this happen.I've had to pass on two deals 'cause I didn't have the cash to put 'my skin in the game' (just put $70k into buying a primary residence).

I was looking at some foreclosure properties, and the realtor trying to tell me I can't do FHA with a foreclosure, cause its sold as is.

@Sarah Albert, if a few thousand dollar surprise is all that it would take to cause you to start missing payments I say pass.