Some home inspectors are able to suggest a fair repair estimate to support the credit request.

If you have no skin in the game, I would say 15% is reasonable.

However, my agent that I use for insurance on my primary residence is telling me that all his REI clients have a landlord policy that just covers their loan amount or the fair market value of the property.

Lenders need a professional estimate of what the fair market value of the home will be after repairs are completed.

As the co-owner has an extended family living there and she knows what the fair market value it, why not get them to buy her (the one who wants to sell) half of the house and she can then walk away?

What do you think is fair?”

@Patrick MenefeeIn places where I’ve lived, including Tennessee, Alabama, and Georgia the 1% rule is fairly easy to hit.

If they sell you a property and then sign you off to a third-party PM, that's another team you need to vet, and means the TK company has less skin in the game (ie once you close, their work is done).They should have solid, data-backed answers to your questions at-the-ready.

I have a fair amount of equity in a previous rental. 

Its fairly affordable and obtainable so I dont see the harm in experimenting on its relevancy to my real estate career.