It appears sanity is returning.Finally, I believe the hedge funds, REIT's & institutional investors have stopped their scorched earth buying in the DFW area.  

"Federally related" that will be consumer loans sold in the secondary market, GSE (fannie, freddie, FHA, VA, USDA, HUD programs) mortgages as well as any loan from an insured institution, so any bank loan is federally related. 

I would suggest that you have her call, or you can call for her, and see what tax break, if any, they would offer to her and how she could go about instituting that discount.

The water and fire damage, as someone already posted, would probably be caused by as many tenants as by acts of god if you instituted something like that. 

There is heavy institutional investing in the area and it is tough finding deals there in general. 

,Your query is a bit vague, so forgive this being a general answer.Most institutional lenders (banks, etc.) want your down payment to come from your cash reserves, not from a credit line.

I believe the earthquakes will drive up the insurance rate and if the home is in a flood zone well that's even more money.To get a rough idea of how much homes are check out http://www.housevalues.com/, http://www.eppraisal.com/ or http://www.zillow.comWhen it comes to loans it depends on which institution you go to bank, credit union, etc. 

I just released a book on Amazon called "Cashing In Tax Free" that covers 1031 Exchange and investing in multifamily (and other) institutional class properties.

Easy way to look at things are any institutional, or Hedge funds buying in this asset class.

I find that the hedge fund institutional investors are gone so I see opportunity.