To compensate for the noise I can adjust the listing price but hoping to get some feedback before I start spending money on renovations. 

No. 906 (RAISED) AN ACT CONCERNING HOUSING PROTECTIONSFOR VICTIMS OF FAMILY VIOLENCE.https://www.cga.ct.gov/2023/hs...

I was able to get an exception to proceed from the underwriter based on the following compensating factors:-The size of the home was common in the market and therefore didn't affect marketability (we had 5 or so comps that we're nearly identical)-The borrower owned many properties in the area and had strong FICO/Assets-The borrower was willing to take less than the max LTV (5% reduction due to size risk)If you have plenty of comps to support this small property type and other compensating factors then there should be a home for it somewhere. 

Accordingly, such seller financers are excluded from the definition of loan originators for purposes of the compensation provisions unless they use table funding.

I acted as my own buyer's agent and was compensated for that.

Assuming you have things in writing and assuming you have a formal partnership, and your friend wants some sort of payout then there are many ways to structure their compensation.

I’ve heard very different ways of compensating to Asset Manager in multifamily syndications(assuming you’re bringing someone on to your team).

No PMI, interest rates sit fairly high to compensate for no PMI.

It is also recommended for you to use a contractor for the renovations that fully understands the intricacies of the 203k (HUD/FHA time limes, paperwork, processes, compensation/draw guidelines, repair categories, etc.), such as a Certified 203k Contractor.

Eventually your compensation will increase to match your (increased) value.