They will make the monthly payments, take care of repairs and improvements inside and out at their expense.

My other selling point is the owner will make more money selling move in condition home versus selling a fixer upper and on top of that he will attract more buyers who can obtain conventional loans.

I may look at the 201k loan - as this would enable me to make repairs and possibly improvements that negate some of the risk of owning an older property. 

That kind of activity may not be allowed in the brokerages IC agreement with you and also their E & O policy might not cover it.So you have to talk with a brokerage ahead of time and see if they are okay with it or not.An investor who is a broker might be more apt to work with you because if they lose the brokerage then likely they already own other investment properties versus a regular brokerage where transacting is the lifeblood of their business.New agents often tend to be rogue agents with self interest above the brokerages at any costs.

The purpose is to buy with little money down and also finance the improvements.

You should have a linked savings account that you can use for reserve funds for things like capital improvements, unforeseen repairs, etc...put a little bit away each month and don't touch it for recurring expenses like taxes, insurance, etc...Not purchasing through your LLC?

I'm currently evaluating value add MF deals in Texasbased on what I can glean from my limited experience, sources of upside include:1. class c property with below market rents - potential to upgrade units and improve efficiencies to get to market rents2.  

They are adding a Nordstroms, and other shopping centers, along with improving the roads.

With the 814 Court St property being retro zoned back into a triplex, so will its property taxes be improved.

There is also a dual perspective from actually owning the property as an operator versus a transaction broker only.