If so, you should focus your energy on those items. 

Items to consider when you rent the homeYou will collect gross rental income and pay for expenses(Insurance, RE Taxes, Interest, Repairs, etc).

The list of problems and costs for this one item would be too long to list here.7 - ....need I go on?

Keep in Mind though gifting is carry over basis vs step up when inherited.

I understand it might be wear and tear item and possibly a Mother Nature “Act of God” is this covered similar to a roof where landlord is responsible?

I can only assume there are permits that need to be pulled (which) but are there other items I need?

He wants to carry the paper on $400k. 

He wants to carry the paper on $400k.

Let's do a calculation for 1 item in a capex budget.

Not knowing these items will put you in a great position to FAIL.Once you have a decent handle on your market conditions and rehab number calculations (there are plenty of threads here that I and others have gone into full detail on how to do), then you can comfortably start looking for private money lenders.