Then sell to a 4% cap rate buyer.For example, someone is buying at 3% cap rate with debt of 3.1%+LIBOR.

She has great income and very little debt to income, but is around a 550 mid score so about 30 points off from qualifying from most lenders 580 requirement for FHA.

She would already control 90% as she is bringing 2.7M of funds to the table (700k cash, 2M debt).-- I’d separate split of cash flow from split of equity too.

Dave Ramseys Total Money Makeover is also a good place to start if you have any debt or to start building up a budget and savings.

It's also much less risky from a financial standpoint: Less cash tied up in the property, less debt/lower debt service, and generally have more possible exit strategies. 

Debt financing does not generally have any tax implications; If I buy a property for $50 and sell it for $100, I owe tax on the $50 gain.

Husband - high salary job, no debts, 800+Fico so can easily qualify for a loanWife - no income Primary residence - mortgage free and in wife name only since inheriting it about 15 years ago. 

I am a registered nurse with no debt and an excellent credit score. 

I don't have any debt except for my 4 homes (3 investment, 1 primary). 

With ARV at 135,000 at a maximum loan of 70%, you can borrow up to 101,250 which means, in this scenario, you could get the 85% of acquisition and 100% of rehab, i.e. total loan amount of 83,750 with an initial release at close of escrow at 63,750 which is 85% of acquisition, and, the rehab holdback of 20,000.15% of the 75,000 acquisition down is 11,250 and closing costs are likely ~3,000 so you initially need ~15,000 to closeAfter close, a prudent hard money lender will require reimbursement style draws which means you must first complete at least phase one of improvement/rehab to the property before drawing down on the rehab hold of 20,000.With only ~5,000 left over after close, you don't have much room for soft costs like utilities, nor much room to get the rehab started, nor much room for the monthly debt.