In real estate investing and all of life, it's a challenge not to compare ourselves with others and wonder, why that investor gets deals done and I don't?

Meaning that they will agree to do the early work with the understanding that if you go forward with the project, they will get paid if for the spec and forward work if and when there is capital (debt or equity) to pay for the spec and forward work.Even if you can’t get either of the parties to spec the work the time and cost to do the early work is short and comparatively modest.

I have one more, seems like I am full of questionsI have a town close to me that is smaller, not much there; real estate is still relatively economical compared to the DFW Metroplex. 

I would compare them side-by-side and see which gives you the most benefit in the short term 5-6 years and long term 7 to 15 years.

Another option is to invest with multiple sponsors, see all their deals pre-purchase, and compare them with after-rehab.

However, if your inspection were to uncover a few items missed in your initial walkthrough, such as a soft spot in subflooring or an electrical issue, it’s a lot easier to ask for $1,000 here or there compared to a complete $30,000-$50,000+ rehab.The obvious answer is yes, bring your general contractor with you during the initial tour.

Currently residing in CA and as everyone knows the housing prices here are insane compared to out of state.

If you are doing a value-add play, local banks and credit unions usually have minimal pre-payment penalties when compared to agency debt and allow you to choose a 5 or 10 year term.

The "Wall Removal" component woould prompt the requirement for a full building permit compared to a "Pull and Replace" Easy Permit option...

If both the cost and interest rate are comparable to a Conventional Loan, I would say it's a great program--as long as you don't mind working with a bank representative.