I highly recommend 24 hour closing.

You may evaluate interest rates, fees, and closing costs by becoming prequalified from many lenders.

Their house went under contract, but has no closed yet, so they are at risk of losing earnest money if they can't close their home or come up with funds to close the new property...or they can try to renegotiate it all with the seller.Here is an example of the form we use.  

Converting apartment buildings  (made up of 300-600 sq ft units) that have lots of character and close to downtown to condos was very popular in the boom times (pre 2008). 

Reading all the books and watching the Bigger Pockets videos, everything seemed to make sense on paper but was so difficult in practice.

The lender will qualify you (there's a rather 'red flags list' that is used) - as well as have you sign all the occupancy declarations - that pertain to the financing prior to closing.

In other words, if your private lender walks, will you still close? 

Go and watch. 

If repaired well with permits closed out and all, an old fire shouldn't affect your insurance or financing options. 

Many CA investors find the Reno Tahoe, NV market appealing  because of the various strategies that can be implemented like buy and hold STR or MTR and the close proximity to CA.