Note payments have paid a ton of my debt off!  

Your credit score is very good and if you have the assets to fund the down payment and interest payments, I don't see why any lender would not do a project that large unless their funds are limited.

what is her payment  history like?

Payment will be expected at various points during the project, and will be spelled out clearly in the contract to avoid surprises.

(By the way you never own anything,even after the mortgage or car payment is complete there is always tax payments and maintenance).

This is my current starting plan: save up to 20% of my net salary for the down payment of my first deal in approximately one and a half years ($15k more or less).

An example is that a group of people didn’t bring cashier’s check for upfront payment as they agreed, so he didn’t give keys to them and requested cashier’s check.

Hard money = typically make payments during loan period, may be interest only or interest & principal.Private money = can get balloon loan with total loan plus all interest due at end of loan term (which you obviously pay back sooner b/c you sold your property).

If we purchase their home for $40k, they can use that money as a down payment on a new home somewhere that wasn't devastated by the storms. 

There was no accident or are you thinking insure payment/performance?