When I go to exercise the option after the alotted time period, do I seek fixed rate bank financing on the appraised amount, which the bank will lend 70% on, and then use that to pay off option and keep any remaining money so that it effectively becomes no money down other than the option fee and any attorney fees needed to draw up the MLO?

I agree with @Allan Szlafrok, anyone can interpret the data anyway they want to get headlines and draw traffic to their website and ads.Remarkably, this positive news story uses the same website as source for this "credible" info...

If so, and it's in your personal name, Pen Fed will do Helocs on rentals at 80%LTV if you have 3 properties or less including a primary. 12 year draw at variable prime + 1%, no closing costs unless they need to do a site visit appraisal (they back charge 3rd party costs waived at opening if you close it within 24 months) and you choose I/O or P/I payments.

But the "no girlfriend" part is where I have to draw the line.

They will be reimbursed for rehab in draws.Construction draws:Released to borrower upon successful work completion, requires on-site inspection, $125 draw fee.

Example you find a $150k that needs $75k in repairs, purchase price becomes $225k, it needs $33k in downpayment, build 3% in seller credits to cover closings costs and money are disbursed directly to the GC, 50% of the material costs at closing and the rest in 3-4 draws.

Take the cost of an item and divide it by the expected lifetime of the item to determine its expected costs.  

If this sight is a indication of what HUD will pay for the 3bd 1bath home per month then property looks like a homerun.Please help it all seems to good to be true.What are the guidelines and draw backs to this class of investing?

Not all..... but many of the "hot areas" for TK rely on the draw of "cash flow" but fail to point out that the 70k property you buy will be worth 72k in 10 years....again, not all, but many.

Seems expensive for an 18 lot park but if the park owned homes are worth $70,000 each or $980,000 total (which means they would have to be brand new), then you are only paying $40,000 per lot (the remaining $720,000 of the sale price divided by the 18 lots).