If they tell you property "A" can rent for $2500, then they are the ones who have to put their money where their mouth is.

There is a SFH my relative is selling at auction due to personal life circumstances.

You're not a hard money lender (unless you are actually/legally one, then if you are I appologize). 

Sometimes, hard money for rehabs/flips may cost a little more buy may be less risky overall.

At some point after quite some learning and studying I figured out that I do the most of the work and the best person to serve myself.

But it's really a matter of personal preference and your business model.

Yes you can buy properties extremely cheap there but the flipside is that once yoI've rehabbed them, recouping your rehab and purchase money will prove difficult because of the low property values .  

And they are also trying to take 1/2 of the money that I paid them instead of giving me the entite payment that I made.

For STR, this is not really an issue, as most STR's 3x the LTR rental income.Also, curious as to why you would want to go Conventional and impact your personal DTI, vs. just going DSCR?

Sara Cunningham yes it will be our personal property.