If the property has equity, be prepared to sell before FC or have access to funds to payoff the loan.

I wouldn't mind spending the time on rehab, and seeing as how I will be using a low down payment to owner occupy for a year I should have some reserve funds to do upgrades.

Some states have a recovery fund for licensed contractors but may not cover non-owner occupied or commercial entities.

This will be funded by either a cashout refinance or a HELOC on our primary residence, its estimated value is $180,000.

When I was at the bank a few years ago, we used to do financing for Australians, but they were extremely high-networth individuals buying nice properties in Aspen at 70% LTV so we were happy to hold those loans.

Max LTV with FHA drops from 96.5% to 80% or 75% (can't recall, but doesn't matter because either way 3.5% down is out the window) if you try adding a non-occupant co-borrower on a 2-4 unit property. 

When the money is out of the TSP I am assuming it is no longer acquiring the gains/losses from sitting in its fund.

In general, a higher LTV comes with a higher interest rate.  

To your question about funds, it entirely depends on the deal.

Blanket Loan do exist, LTV's go up to 75% with minimum property values around 50K and minimum loan amount of 100K