Investment Info:

Single-family residence other investment.

Purchase price: $50,500

Sale price: $73,000

Single family home was purchased directly from the owner and was sold As-Is condition to another...

If the house truly has income potential, possibly you could work out a private money loan deal with family/friends/investor to loan you the additional down payment to get the bigger house for the income potential.If your DTI supports a higher purchase price than your initial pre-approval then talk to the mortgage broker.The last thought that comes to mind is if you find a home that already has a leased tenant that would help demonstrate that the house is already an income property and cash flowing so the bank may see this as a lower risk of default.Ultimately the lender is looking to minimize risk so putting you in more house than you can afford isn't going to happen without some other risk mitigation steps like the ones I noted. 

My objective is not to minimize the risks or misrepresent the offering -- just to explain what it is in a way they will understand.

I don't think such thing exists as in US, check with your CPA, Accountant for ways to minimize taxes in Canada, as laws are completely different. 

Rehabbing from out of state can be a mess and I would always recommend either avoiding that or minimizing work to basic cosmetics.

Closed quickly with minimal repair issues.

@Anthony Morvillo A clear conscience is the most powerful sleeping pill there is. 

And how much profit would you accept minimally per flip?

I plan to be married to my girlfriend after graduation and she is planning on going to graduate school to be a clinical psychologist, so I am roughly estimating that for the first 6 years after college she will be making minimal income from school stipends.

The appraiser can move through quickly and take the minimal notes and photos they need without touching anything -- they can get measurements and do all of the rest of their work outside.