Typically, with fix-and-flip loans, you complete the renovations upfront, and then the lender reimburses you via the draw schedule.

I have found a potential short term cabin in a great spot that is only wanting to have someone assume their current loan.

In general, I don't think just running stuff through there will get it done because you won't be earning enough to make it loan-worth anytime soon.

We bought a large home on a large lot we thought would be our "forever" home for $460k. 

Nightmare story,I've bought many homes before but this was by far the worst ever. 

I still have to see what's happening with utilities, but right now it would cashflow anywhere from $150-$300 (depending on the loan type and DP we select) with a CoC ROI between 9.9%-10.8% (lower than some other options we're looking at, but it already has tenants...)Thoughts?

Your refinance loan amount isn't enough to pay off your initial financing.

And if it did happen, the lender will simply fix the "botched paperwork" and proceed, A lawsuit will cost your friend $25,000 plus paying the arrears on the loan with no guarantee of success.

Liberty area I currently make 70k and have roughly 20k to put down and I also qualify for a VA loan.

Property is exempt from STR permitting because the jurisdiction considers it to be a commercial lodging establishment.We've been pursuing an SBA 504 loan for it, which was going well until we discovered that the sellers have operated it only part-time the last 12 years -- intentionally blocking 60% of available room-nights because they just weren't up for running it full time in their retirement.