From there perspective, they are concerned if you default midway thru the build, and they are left with a half finished project, in the case, there is no equity in the project.For example (using round numbers, as I have no idea of the specifics of your project), if you purchase the house for $50k, and the land value is $40k, the would give you credit for the $40k as equity toward the 25% of total costs that you need to put up. 

I’ve been doing my research and self education for the past year and half and finally got the guts to pull the trigger.

It took me a month and a half to get rented and it now rents for $889, mortgage is $375. 

So, if you play your cards right, you could live rent free for over 4 and half months in Downtown LA.

However she wants the buy back the house a year and a half later when she finishes school and able to qualify for financing.The house will be around 200k.

It sounds like it can cut the time I plan to take action in half.

It would be amazing to find something within half an hour of here, for convenience and to hopefully self-manage the property. 

An experienced investor brought a great deal to the table as a buy and hold, and half way through we decided to wholesale it!

C) prices as a result of A &B are in some cases 2x for stuff that was half price 6-12 months ago.

Can you buy a duplex where you rent half and live in half and come out further ahead?