I've owned it for ten years and it's unrented because I'm concerned about renter safety and my liability. 

That being said, numbers still have to pencil out, you'll deal with 5 year ARMs, likely have a full recourse loan, etc. but there is definitely more of a partnership feel to it. 

I do have a lender who is likely able to get me into the following loan program though... 920K on a 7 year arm, fully amortizing and currently at 4.375%, with a second for 110K being a home equity line, interest only for 10 years (30 year term) and currently at 5.74%.  

The criteria for the inspections is pretty strict on safety and good condition so take that seriously.

Ensure to read the approval letter, short sale affidavits, or any arms length transaction paperwork provided; these are common areas where you may find verbiage on this matter.

That being said, I don't go any higher than 25% loan to value, just to keep a safety net in place should a market correction be around the corner. 

This will only work with small local banks doing 5 year arms.

I was told it was doable and was given those conditions to apply:1. 35% Down Payment2. 1, 3 & 5 year ARM's amortized over 30 years : NO prepayment penalty3.

There are no realtors involved and this is a non arms length sale due to being between personal friends per the seller."

Businesses that has more money to lose, has more money to pay, is too scared to do to the other side (hiring unlicensed contractors), simply because they don't want to pay more once a person breaks their arm or falls from a ladder during their time there.