Both of them have a confusing set of conditions and restrictions attached, also frequently modified.

And, once you're on the radar, you can expect to be "visited" frequently.

I suppose this is a frequent occurrence but I really never considered that. 

As a general contractor who works in Woodbridge/Manassas frequently, the rehab cost of $100K is about right assuming a electrical/plumbing/hvac replacement a full cosmetic interior rehab, depending on the style/condition of the exterior that could push you closer to $120K for rehab costs.   

The term novation is frequently used to describe this situation.  

Second, as the market starts to get better assets will start changing hands more frequently and that is when real diligence occurs. 

But do I think that appreciation in this local market is resiliant enough to handle rising sea levels and the potential for more frequent hurricanes over the next 10-15 years?

That's something you can watch as well.I've discovered how to get their addresses and since they are so close to mine, I drive by each of them frequently and I'm not seeing much action.

With rates rising lenders are getting creative and coming up with new products frequently

Nice job- I've always been interested to see more of these creative financing deals being flipped to investors, but wasn't sure how frequent it really was done.