I would also get a contract that states that you can place a mechanic lien on their house for the rehab cost plus the fee list above.I'm not a fan of doing deals where you do not have ownership rights in the property.  

This just involves being a planner and planning for the crap to hit the fan.  

I'm not a big fan of paying off student loan debts since they are low interest debts.  

@Jay HinrichsSince you yourself prefer investing in low risk/high quality homes, what is your reasoning in recommending turnkey homes in markets that are generally the opposite of the ones you're a fan of?

Have any ceiling fans?

I'm not a fan of these because: 1) I have no way to ensure they are indeed exclusive - there's a lot of shady people down here. 2) Even if they only sell those leads to you, they aren't really "exclusive" to you - like I said, lots of people are mailing them. 3) They are quite expensive.

The agent we spoke with was not a huge fan of the FHA loans and recommended putting 20-25% down which based upon current inventory in the West Town / Ukrainian Village neighborhoods would mean that we would need a down payment in the range of $140-$180k.  

Well, I have news for you, The PIP Group is way out of your league. 

And I worry about who they are in league with to carry out deceptive appraisals).Someone in another thread brought up the "low document" loans that were foisted on unsuspecting home buyers back around 2005-7.

Though I am not a fan of financing real estate purchases with a personal line of credit.