An 80/10/10 loan is typically designed for an owner occupied property.

WAIT until your bank gives the all clear on her check before refunding her money.DO NOT refund until the check clears the bank and you confirm with the bank that the funds were good.This STINKS of a scam.

I would get all the paperwork you can from the lender and confirm what you can do with a lawyer. 

We talked about the progress every once in a while and let them contribute to some design decisions so they felt included.

The design criteria and review processes contained in this Chapter are provided to protect and maintain the established character of all residential neighborhoods within the City.9.43.015 OBJECTIVESIn order to maintain neighborhood compatibility, any proposal for construction within a residential zone shall comply with the following objectives:(a) Natural AmenitiesImprovements to residential property shall respect and preserve, to the greatest extent practicable, the natural features of the land, including the existing topography and landscaping.

I am in the SF Bay Area and I have a broker and an agent that says they are experienced in helping investors...my question is how can I confirm they are actually going to help me obtain a good deal?

Take a walk around the area, just get a feel to confirm the data and if you desire to invest there and how. 

@Steven McCutcheon I confirmed with my lender and it's a conventional instead of 203K, thanks for the tip.

I'm a certified project manager, a partner in a landscaping construction & design company...I'm also currently living in North Las Vegas.

Come up with a number of $/unit/year and use that + 5% (inflation).If you don't have books, then it really tough since a property may be old/new, high turnover, existing poor design, etc.