Items to consider when you rent the homeYou will collect gross rental income and pay for expenses(Insurance, RE Taxes, Interest, Repairs, etc).

The list of problems and costs for this one item would be too long to list here.7 - ....need I go on?

I understand it might be wear and tear item and possibly a Mother Nature “Act of God” is this covered similar to a roof where landlord is responsible?

I actually understood your model initially. 

I’m not too keen on the fund and grow model operating solely on business credit but it does seem the most direct way to utilize the cash I have on hand and acquire enough operating capital to get into decent property.

I can only assume there are permits that need to be pulled (which) but are there other items I need?

Let's do a calculation for 1 item in a capex budget.

Not knowing these items will put you in a great position to FAIL.Once you have a decent handle on your market conditions and rehab number calculations (there are plenty of threads here that I and others have gone into full detail on how to do), then you can comfortably start looking for private money lenders.

I've seen companies succeed with this business model, but they had very strict guidelines on the kind of properties they were taking on (only class A and B).

An additional question: In the contract we recieved, it states: "Seller will provide estoppel certificates as a required delivery item prior to the close of escrow and estoppels will not be subject to any buyer contingency approval.