One of my favorite programs offers a rate floor down to 7.50% right now, but their par rates are more competitive (i.e. without a buydown).

@Bryan Schmidt It sounds like you will need a construction loan to fund the improvements even if the seller were to offer you a second position mortgage for 20-30% of the purchase price.

You will have to consider that the VA interest rate is probably going to be higher than what the lender is currently offering. 

The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here.

It is offered as a way to bypass buying RE in SDIRA? 

But assuming I feel extremely confident in the proforma numbers, does the structure seem fair for the risk and requirements from each party?

Use that money to put down on a real piece of property that offers tax benefits, appreciation and less police traffic.

The program looks at location, property value, amount owing, interest rate, taxes, insurance, rents, condition, etc and several exit strategies.When we make an offer to buy, we can offer cash, subject to, wrap, seller financing, lease option, seller carryback and so on.Obviously if we wholesale the property, there is no carrying management needed, and if use a lease option to sell, the optionee is responsible for maintenance and repairs.

This system is extremely expensive and raises your costs a lot. 

Is there any banks offering a HELOC on a rental property?