Rural street with massive lots already has handful of remodels with some listing close to $1M ARV.From BP flip calculator:$900,000.00 After Repair Value ($460,000 List Price $200,000.00 Rehab Budget $150,000.00 Profit Estimated Repairs Total: $200,000.00Could use input on overall deal, as well as typical $cost/ft to add a second floor to bring total to roughly 3,000 sq ft. with a 2nd floor master and bath, perhaps an office or extra BR upstairs as well.

Banks are market by market but typically around 5%, some are struggling to get to 10 years and may have shorter ams.

Banks typically do not use current assets as collateral.  

Typically state would supersede municipalities and federal would supersede state.  

We did essentially pay for the $7k, but it was wrapped into a 30 year loan.

That is typically what I have rented to I have never had an issue.

The home typically sells for more and the owner (seller) actually gets some marketing for their home.

Some folks are willing to take the risk in the gamble for appreciation, especially here in CA, they are typically purchasing when the market is down, not high as it is now.

So essentially utilize the Brrrr strategy? 

you essentially will manage them to run the park.