there you go.THAT is the question... and guess what..

Not a bad deal I guess but by the numbers it’s nothing to get excited about .

They aren't trying to keep you from lending.So where to go from here.You can attempt to borrow money from someone / bring on an equity partner but you will have to redo most of your loan docs to bring that person in.You can negotiate with the company and find the reasoning behind the dollar amount (again, I am guessing it is because of the stuff I have already addressed above).You can try to look for a new company.

It's all a best guess but hopefully some guesses are educated while others aren't. 

(The program is Healthy Neighborhoods Program).I guess my question is .. being that I would like to get into investing ASAP and i feel like this would be a great small step , are there any more options out there that would be more optimal for my situation (hard money lender, other programs, better routes)? 

If you did that, my guess is you'd end up right back in debt within a year because you're not addressing the underlying problem (poor money management & living beyond your means). 

By going over every single what if with an attorney, it takes the second-guessing out of who's responsible for what when problems inevitably happen and what each person role specifically is.

They will only do an inspection after you have interest from a prospective S-8 tenant - and since it's free, I guess that makes sense.

I guess what I am curious from you, BP, are the following things.

So if you want to take out a wall, the contractor can only use an educated guess as to what is in that wall.