Paul's site isn't exactly explicit on everything you need, so is it just the Fire Certificate of Occupancy?

Used an agent-recommended local lender to put 10% down + 1 point for 7/6 ARM (with no PMI and option for no-cost refinance at 20% equity) for a house hack.

So, it sounds like the FHA option for me is out.So far, the best I'm finding is 80-85% LTV from local lenders; the downside is they will only do an ARM, not a fixed loan.

There are exceptions if related parties are involved, but it sounds like you'll be leasing from a third party in an 'arms-length' transaction. 

However there are loan programs like FHA, Home Possible, Home Ready, VA, and portfolio loans/ARMs which allow you to put way less money down.

(not so active here in BP unfortunately, but looking to change that)I can say HomeVestors is not for everyone and certainly pros and cons but from my opinion the value of the brand, their ability to target QUALITY leads, and also hard money lending arm make the costs very appropriate.  

It would allow you to borrow a limited amount of your current plan for your own use (i.e. such as your personal flip), and the balance could be invested at arms' length into real estate, private lending, etc.Another option would be a Rollover as Business Startup or ROBS plan.  

I don't understand how this would fall on me as the homeowner unless the contract explicitly stated this, like you mentioned. 

I got a portfolio loan from a local credit union, 7/1 ARM (adjustable rate mortgage) at 3.375% for 7 years, adjusts after that (max possible interest rate is 8.375%).

In a few months/years, armed with knowledge, you will be in a better position to decide what is the best fit for your needs.You sound like a smart guy with a great head on your shoulders.