If you are thinking of a hard money lender or a conventional construction loan, then normally the repair money is held in escrow and as Wayne said given out in draws as you complete the work. 

Would I qualify, in other words will banks even touch me with a 10 foot pole (dismissed bankrupsy, Collections, chargeoffs)  Or should I (hear me out here) Sell this property (wink wink) to a well qualified person of my choosing, and use the proceeds of the sale to flip my next property while paying off my *sale* house.  

Where you normally get the kind of tenants from ?

Normally occupants are not liable for the rent.The Estopple he mentioned is a letter from the tenants explaining the terms of their agreement especially anything that may not be in the lease.

Attempting to get a foot in the real estate investment world.

I am looking at purchasing my dad's house as he gets ready to move into a retirement center and was looking for an opinion on my simple financial proforma on the house.I am a first timer and normally would not be looking at a full retail value purchase, but it is my dad.

Self storage rents at the same price as apartments 9per square foot) but the expenses run only 30-35% whereas MF expense ratios are 50% or more.  

I would also include the inspection (that's huge to make sure they know you're serious about no damage to the property, beyond normal wear and tear).I put together a high level checklist on how to manage your property.

Is this a scam or normal?

Look at 50 houses before you make an offer on one, keep a journal, keep prices of square foot per house that you look at it.