It's my understanding that the standard model would be to fund a project like this (acquisition and construction costs) with your own financing, generally via construction loans with personal guarantees of the principals, thereby taking on all of the risk in the event of poor project performance but also capturing all of the return if the properties are sold for a high profit.  

I can tell you that our management company only does 2yr leases where every other company only does the standard 1yr lease.

@Arthur Banks , @Brandon Turner is right that 2% is the "standard" figure used for long-term growth rates, and that it's prudent to make sure you will still be getting a decent return if it is not exactly that.

I need some clarification pertaining to the inspection contingency.Does the contingency depend on the sellers response or can the buyer cancel the contract regardless?

I agree with you, gurus should be held to a much higher standard, but newbies keep following them.

IMO just because a deal is outside of the box doesn't mean it's a bad deal and I sometimes feel like, for some agents that I've worked with, if it doesn't fit into a standard, cookie cutter, every single day agreement -- it's wrong.I believe if everyone is transparent, if everyone knows the risk and there is a base level of protection is given in a deal-- then is a deal is a deal.

The next paragraph is standard stuff.

Since there is no approval on the second mortgage, you technically do not have an enforceable contract (all said assuming standard SS addendum is used - nor am I an attorney nor do I play one on TV or the internet).

Here are some links that may better assist you... http://www.irs.gov/uac/Newsroom/2013-Standard-Mileage-Rates-Up-1-Cent-per-Mile-for-Business,-Medical-and-Moving http://www.irs.gov/publications/p463/ch04.html#en_US_2012_publink100033930http://www.irs.gov/taxtopics/tc510.html Kudos, Mary

Standard insurance from Farmers, State Farm, Allstate etc is find they will require the policy has 6 months rent loss coverage which isn't much more and generally standard with most polices on rental properties.