I understand that once he puts consideration down we are legally obligated to fulfill the contract.

No one ever plans on getting divorced but it is considerably harder logistically when the partner who stayed home with kids has no credit to get an apartment or refinance the house into their name. 

If the servicer has not already discussed a short sale or DIL with the borrower, the servicer must proactively notify the borrower in writing of theavailability of these options and allow the borrower 14 calendar days from the date of the notification to contact the servicer by verbal or written communication and request consideration under HAFA.

Parting comment/question, why are you considerating a two loan approach when a 80 ARV rehab loan will allow you to wrap in the purchase price + rehab costs + closing costs using only one loan?

Most we loan to use their own cash for the rehab and forgo the hassle and considerable expense of a draw system.Jeff

If you have 6', you don't have to dig down too far to get a legal ceiling height, a foot or so?.

However, for warm climates, Jacksonville, Fl would be on my list for consideration (I've got properties there already - and there is still a lot of on the ground opportunities) or Asheville, NC for its culture and beauty.  

The same area price I paid in 2013 was 40% of what this guy paid for his; when taking into the consideration of age, condition & square footage of the house. 

Personally in your situation I would think the timing of the sale and knowing the amount of funds you would have to work with would also be an important consideration.

Interesting, Darren, my definition is very close to yours, but I'd say there is another important element, the quality of the information given.To me, the derogatory use of the term is applied to those that add fluff, exaggerations, aspects that while may be technically correct but are highly improbable to replicate or simply put out bad advice with no consideration to ethical issues.I make that distinction because, some professor in some university teaching a real estate course or some instructor in a state approved real estate school for agents isn't a guru, they are teachers and instructors.The difference in being a non-guru teacher is two fold, 1. the materials taught are compliant with rules, regulations, laws, accepted in practice and are based in sound applications of the business; and 2. they are qualified by education and experience, by education that has some professional level that is determined by proof of their mastering a level of knowledge, testing and degrees earned or certifications by proper authorities in the industry or academia.