May have an option to buy numerous, sub divided single family home lots within established town.

Lots of properties on the MLS (or other sources of Intell) list only "annual gross income" which I divide by 12 and use as monthly rent.

I already have the engineer's report but need an architect to draw up his recommendations toward raising the existing ceiling of a flip house about 2 ft. 

@Morgan Merritt if you do want to look into a Heloc, FYI you can get one at Pen Fed at 80% LTV if you have 3 properties or less including a primary and the house is in your name and not an LLC. 12 year draw, variable tied to prime + 1%, no closing costs unless they need a physical site visit appraisal.  

If you're working with a turn key company, there won't be a real estate agent involved but the turn key company will generally handle the process of drawing up the purchase agreement and opening escrow with the title company.

It has to be crazy enough to draw attention and comments, then others will jump on board.I picked up management of an occupied home with tenants behind on rent.

Or after the draw period?

It could be structured similar to how lender sets up draws on a construction loan.  

PITI is $1500/mon (PI: $850; TI: $650) at 3.5% fixed interest rate, no back payments due, thinking maybe a wrap mortgage would get them the price they want but with the divorce it makes the situation trickier, they have about $168K left on the mortgage I assume they would want all the equity up front so they can divide it up.

Pretty simple actually - 150 a month x 12 = 1,800. 1,800 divided by 135,000 = 1.33% return on equity.