You can ask to see their standard forms ahead of time for review.The due on sales clause thing is in most residential lenders investor loans.

Plus you will have to lock down a contractor who is licensed, insured, etc which can be the biggest headache of all.

@Steve MorrisI believe this is geared towards those who can’t get standard bank financing for whatever reason or who need it quickly.

You may need to walk her thru the entire process, but if it's worth it... maybe she'll get on your page, especially if it pays for her living standards.

I would for sure get ahold of some reliable licensed insured and bonded contractors who are knowledgeable and can provide you with previous work experience and call atleast 5-7 references.

In my experience of 2016, here is what happened:Month 1 and 2-  A lot of uncertainty due to local regulation, FEMA, flood insurance. 

Just because a neighborhood is hot, some investors say that house sold for X so mine should, when in reality they've not rehabbed to the same standard. 

Focusing on maximizing IRR instead of other metrics has heavily influenced my priorities.To answer your main question directly, I am able to get 10-15% IRR on standard 25% down purchases, and 50-70% IRR on owner-occupied 5% down purchases (where I have to move into one of the units).

The main benefit for VA over an FHA loan is 0% down required and you don’t pay monthly mortgage insurance, which can add up to quite a bit in the long run.

Details: Purchase price: $50,000Loan amount: $40,000Down payment: $10,000Interest rate: 6%APR: 6.404%TIP: 116.332%Monthly principal and interest: $239.82/monthEstimated Taxes, insurance and assessments: $292/monthEstimated total monthly payment: $532Estimated closing costs: $8,247 (+$10,000 down payment)Breakdown:Origination charges: $950Appraisal and all title fees: $1,862Recording and transfer taxes: $800Prepaid homeowners insurance and interest: $697Initial escrow (2X months Homeowners insurance + 12X months $250 property taxes): $3,000Other (buyers personal attorney fee $450 + Title-owners Title Ins $405): $855Thanks again so much for your time and input.