Higher returns (typically) than say a note (whole package deal) versus a rehab flipper who is doing it hands on and basically has a job.  

I am confident there is a clause included regarding drug activity..I'm not a lawyer, so don't rely on what I say as fact. 

I'm also looking for deals where the "ma and pa" owners will cary the loan with say a 2 year buyout option built into the contract.My focus is on the finding the "deal" currently, then I can really get into the numbers.

(For example say a 4 bd/2 ba turned into a duplex each having 2 bd/1 ba)I am also wondering how distressed a property must be to qualify for a 203k... does the home have to first be considered to NOT be in livable condition, or can this loan be applied to a paint and carpet rehab?

Is it still possible to get a HML for say a $50,000 property? 

To attempt to bring this together...let's say a kitchen fire happens and makes the house inhabitable.

Depending on the city, size of the rental and location, a 6 Cap is not unheard of, but that would be for say a 30 unit apartment or more.Managers prefer to have lower rent and fewer restrictions as it makes it easier for them to fill the units and keep the tenants.

I have become accustom to my standard of living and where I live, and I wouldn't want to downgrade if I really don't have to.Some are HUGE proponents of doing so, so it your case, theyd rent the home, then move into, say a duplex and do the househacking method.

Let’s say a house cost $25,000 and had $25,000 in reno.

I know this is an older post but I wanted say a few things...Yes- there is an actual town called Niceville....it is wonderful.I am a real estate agent here and former financial planner turned investor after realizing that 7-8% on a good year was not enough in the stock market.Let me know if you haven't found a favorite- perhaps we can help each other.