First It is fraud second if you lose your tenants and can’t make the payments you may lose your primary residence.

If you sell with an agent you are going to lose 60-70k.

Is the worst case scenario that you cannot refi and have to hold for an extra period, or is it that you are borrowing the funds and lose money because you are out 50k for the rehab/refi?

set your sights on what you want and don't settle. but also dont over indulge.

NPL's - If house prices start to fall, that can have an impact on NPL's as sellers are not concerned with NPL property values and holding costs, but if housing turns, then holding assets which have out of pocket costs AND are losing value will force them to sell much faster.Seller financing vs. institutional paper?

Personally, unless the deal is incredibly good and I can offer sight unseen, I walk the property or have someone I trust prior to putting a contract in.

Do not lose sight of the principle that growth rates magnify with the size of your investment. 

Did folks lose out who bought in 2006? 

I dont know the reason but i assume it was so they wont lose it.Now my question is, is there anyway I can take out any more equity loans in the house so I can renovate fully and sell for a much higher price, can probably pull 3.5 for a fully functional higher end house.Is this even worth perusing or should I not touch this with a ten foot pole.Thanks all, looking forward for your expertise

You may be able to get a non-refundable option payment from the tenant-buyer and can potentially contractually lock-in a premium above the market value on the future sale, which may prevent you from losing money on the resale, if the buyer can actually complete the transaction at a future date.