My wife is a full time interior design/sales rep and part time realtor.

Sales contracts have an inspection and repair contingency where Buyer can have an inspection done and terminate the contract if any issues arise. 

studying for my real estate license 

Right now I'd say the biggest risk is in execution, i.e. will the sponsor deliver the rehab and sale/refi in the time they say they will.  

However, this will trigger the due on sale clause.  

"Directly from lenders" REO Sale, once the property has been foreclosed you buy from the bank.

I don't have all the answers to your situation, I will share a little of my experience - When I was younger – in my 20’s in the 60's, I never had too many jobs - the longest one I had was with a correspondence school for 7 years - that sales training was the key that prepared me to be able to negotiate real estate transactions.During that 7 years I started taking seminars, buying cassette tapes (remember them?)

I will be maintaining an internship with Daisy brand's (the sour cream company) sales division.

it does not sound like a deal that make sense, unless the seller are willing to short sale and still bank has the say on bottom line number.

Always do a math analysis and try to look at the prospective properties before you make an offer or at least have a clause in the sales contract that allows you the time (usually about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that will hurt you too much.I went to college too (and it is not mandatory) and I got a business degree that emphasized real estate.