In some markets and at certain times, it may not make a significant difference compared to the time and money you would put in to do the rehab.* To the same real estate professional, find out their opinion of the area and the current and potential growth and appeal of your property and the neighborhood (market) to potential buyers and renters.

Some are forgivable at a rate of 20% per year and after 5 years they dont have to worry...Others take 15 or 20 years before it becomes 100% forgivable.Some are not forgivable at all...With this deal I would be less concerned with equity that exists and more concerned with the amount of that equity can the "Moderate To Low Income" of a Habitat Homeowner support in loan format.I am almost certain that its possible but your going to want to know the terms of the DPA/ Grant so you're aware of the actual cost and you have to see what the DTI looks like to see if it will fit what theyre looking for.

His family says he has money and they have his debit card and want to pay back two months… doesn’t sound legal.

You could save money if you do it yourself, but you'll be using your time. 

You pays your money, you takes your chances :)

Private money lender How did you add value to the deal?

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if your ARV is 200K, for example, and it needs a medium or greater rehab, you probably need to buy under 100K.  150K won't cut it, you'll lose money.

I am curious how they plan to make money after spending $5k to furnish and another $200 for utilities monthly, ON TOP of the $1800 rent.

So, with no foundational knowledge of real property, and no capital, his only alternatives are (1) “bluff” the homeowner into thinking he has the money and intent to close the purchase himself and or convince the homeowner he has an extensive list of cash ready interested buyers (“partners”) with whom he’s done dozens of prior deals or (2) pack up shop, write off the money invested in mentoring to a worthless investment, and decide IF real estate is right for home.