So just to clarify, even with the hard money route and all those associated fees that come along with it, I would still be able to get the deal done with $20,000 "skin in the game" and yield a profit?

I suggest you grow thick skin and count yourself lucky if she moves in 30 days.

For example, let's say Mary Smith fills out an application to rent my property and puts down her boyfriend, Jim, as her "landlord", who has been previously briefed to give her a glowing recommendation.

A seller that doesn't want a buyer to have any skin the game is wanting to get out of a very bad situation.

All I had to do at that point was plug them into my existing system.You need thick skin in this business but I think most of the money from it is made by creating a system that manages your own portfolio well, not other people's portfolios, especially in multifamily. 

@Daniel Lioz I certainly think it would help your appraisal, and somewhat depends on the quality of the lease/tenant for the eyes of the bank and appraiser.I think you're somewhat asking if you can get in the purchase with no money-down because of the value add, no probably not, because the bank will want to see skin in the game.

Now before everyone jumps on me and says there no skin in the game let me start off with the reason im so gun-ho about doing this deal. 1.

I believe having in house property management - that will forever have skin in the game with you and your investment is the #1 necessity in purchasing out of state.  

We are off to a great start on our new rental.  9 reviews to date and ALL 5 star wtih glowing comments. 

If the City doesn't require a design professional and you complete the work with a fly by night contractor, you as the owner have much more skin in the game if something goes wrong.