Lending on primary residences is extremely regulated.

Do you have first position on title?

I'm brand new to Real Estate investing, I have a property currently being rented that was my primary residence.

I am now seeking positive cash flowing Lease Option/Rent to Own contracts with option to purchase at a minimum of three years in Atlanta GA.

So if you truly have valid reason or reasons to support your application that indeed the MFH will be your primary home, then you have a good chance of the underwriter and bank approve your loan.

A new roof is an expensive venture for a lender to undertake, if the plan is to take a loss (short sale usually connotes a lender taking loss on its position).

Almost all will do so on a primary residence but not an investment property.

I currently rent my place in California (so I don't own a principal/primary residence currently) and can't move as I have kids in school here, etc.

On the positive side, I might use "TIC, TAC, TOE" with your friend, might do a Sub-To, but if that land is marketable I'd be thinking of subdividing 50 acres to pay for my house.

I strongly believe the costs will be a positive over the long haul.