I sent a FSBO this note:Would you be interested in leasing your home to a tenant / buyer (that you approve of) who will make the payments and take full care of the property in exchange for a long-term option to buy the property at your asking price?

The time to pay for the inspection is after you have the property in contract, subject to your approval of the findings of the inspection report.

So, during the attorney approval period, we get copies of the paperwork and discover the discrepancy.How much were they underestimated?

Do I need cash to purchase it or just an approval letter/amount from my lender to start the process going?

You'll be qualifying with the other loan as if it had already been approved.

If you have a short sale under contract in your name alone, what is the easiest way to bring on a partner without going back to the bank to change the approved buyers name?

With your approval contingent on the tenants agreeing to and passing your standard tenant-check process.

I even have them holding off on payment until permits are approved and they may even be willing to hold until project is finished (but the sticking point is the second position they would have during construction).

The biggest hurdle would be getting the approval from the planning department.

A word of advice is to start contacting banks about a mortgage ASAP, as it will definitely be tough to acquire pre approval with only a year's worth of salary.