I'd be tempted to sell and invest that money elsewhere. 

Show them how to make money both from rent and the house value going up.

Lack of Permits: Some flippers may skip obtaining the necessary permits to save time and money.

Perhaps I can find a private lender or use a Hard-money lender.  

I have gotten two variances in my lifetime to split lots and I made a lot of money doing it.

I told my agent ( and I have used him for 25 years) I said jeez your going to lose a ton of bizz if thats the best your guys can find .. 

It seemed like the best fit for me, i could just start fresh and put all my money towards vehicle payment and down payment savings.

The representative said the tenant would be re-evaluated after 6 months to see if they still qualified for the assistance and they couldn't guarantee a year long lease.At least with Section 8 its guaranteed money.

So chances of finding the right buyer, (DIY saving money type), with kitchen size/layout very similar yet flexible - willing to build/spec the cabinets around the size of the counters... is exceedingly slim.

I can put some money down, but I want to stay under $50k at absolute most and prefer to put down as little as possible.