Hey Cha, One of my clients ran into a similar well issue around this time last year. 

When I first interviewed(phone) with one of the owners everything looked great and communication didn't seem to be an issue.

Now here comes my issue I have 2-3 clients/ family friends that want to partner with me, they would put all the capital required to do a flip.

Another issue in this market is when you are in competition putting nothing down versus someone who is putting money down or paying cash, someone using a VA loan will probably lose out on that deal. 

How do they handle CX on self-transactions (big issue for you as you plan to be active like I do)?

Bigger discount rate (60-75% of note principal balance) will apply to notes that are: new note, no payment history, low interest rate under 7-8%, long term (over 15 years), paperwork issues (dod frank compliance for ex.), undesirable markets, long foreclosure states, and few others. 

This also doesn't take into account the issues with financing.

Not just on this issue, which she has right to be upset, but to everyone that comes across her.  

My only issue is I'm in a smaller town (30,000-40,000 people) so it's been hard for me to find deals like this.

I am having issues estimating how much to put aside yearly for Vacancies and Cap Ex repairs.