As a Westchester resident, I can confirm what Kyle stated, it is very expensive.The short answer is you can use hard money to borrow the 500 - 600k. 

You wouldn't put 20% down deals like this, but typically it's a common practice to put some cash in seller's hand depending on how much equity the seller already has.

I also rented my primary residence in Denver and have $800/mo cash flow on it.  

In order to not have to put any of our own money into this deal, we intend to leverage the equity of my Grandma's home as a down payment for the loan.2) Should we leverage a construction loan or some other form of financing?

Investment Info:Single-family residence fix & flip investment.

This property is three hours from where I reside, complicating the direct management approach.

I reside in Minnesota, and do not see anything that prohibits from having tenants sign an addendum but maybe some people can weigh in on this and if its a good idea to include or not?

Investment Info:Single-family residence buy & hold investment.

I'm positive you can find a lender that supports this type of product, it's all about putting in the sweat equity to make it happen and not taking no for an answer! 

Tims program is built to teach you exactly how he has bought 3400+ units in 5 years and holds atleast 80% equity in the portfolio