This means it doesn't meet guidelines for conventional financing and thus is currently unfinanced. 

You will need regular reports and communication with them to insure they are following all your guide lines.

Hi @James Terry,There's actually a program we have that will let your intent to purchase the home to provide housing for a parent mean that you are offered owner occupant guidelines/rates/terms/LTV/etc even though you have no intent to live there.

while its a gamble to count on appreciation it makes little or no sense to me to deliberately invest some place that has a slim chance at best to appreciate. 

I suppose the goals I listed are more of a guideline for the amount of energy and time I am anticipating to invest in the coming years.

What is the basis/guidelines creating this?

But, this of course is another gamble.

My question has to do with running the numbers to valuate a potentially "good deal"I've been reading about the 50% rule which makes great sense as a guideline.

They have their own guidelines and they varies a lot.

If the loan amount isnt high enough or your debt service coverage ratio isnt within standard guidelines (1.20-1.25), or it's in a rural or blighted area it may not meet qualifications to refinnance.