If you "jack" the rent up (even if you find a tenant willing to pay it), typically the appraiser will not give credit for additional value above and beyond what market rents would determine.

Since you allow people people without the credit or means to buy.

But let us say I would be satisfied with about 10% annual return after 10 years, the house will have to appreciate (keeping the calculation simple) by (10-2.4)*10 = 76%.While I am very positive about appreciation of RE in silicon valley (specially SFHs), but 76% appreciation seems unlikely to me.

It's some questions that most hard money need to know.1) what's your credit score2) how much cash are you bringing in?

Side note: They said they have a 800 credit score and are currently paying more a month. 

I past the test first try, and credit the hundreds of practice questions the school provided.  

I'm a newbie but I was looking at multi family's around my area and wondering if there's anything special the banks can do if your purchasing a property that is already cash flowing with tenants?

The CMA of the property would be around 430k-450k looking at recently flips homes close to the property (not counting the extra 400 sq). we talked to other investors and came with a rehab cost of 50k give or take, again this is our first work so we might be off by more than we would like to. the Owner of the house seems more than willing than to finance the project 100% by either using his business credit or even taking a HELOC on the property we are flipping.

Credit score is 815, never missed a payment. 

I want to send a notice introducing us as the new owners and giving them notice that in order to renew their lease they first must consent to a criminal, credit, and eviction screening under our new minimum qualifications/new lease terms for all persons over the age of 18 that live in the home and also inform them that rent will be increasing November giving them the chance to stay if they want  and meet our rental qualifications or decide if it's best for them to move.I want to know does this seem reasonable and if there are some things I should consider before moving forward with this plan?