The house is in "ok" condition & could use some fixing up.

The thought was to use the low downpayment offered for home buyers, buy a rehab , fix and sell.

It is no longer a asset.Residential house & plex-only investors tend to think that all loans are fixed forever at 4% or something.

I typically use $30/sq.ft to estimate fix up costs.

I have since taken care of the dead tree for which the citation is for...BTW..The City of Phoenix who wrote the citation informed the resident it was not his responsibility to remove the tree, even though it is in his lease agreement AND it is an owner finance arrangement....Question 1: Do I need to go to court being that the violation has been fixed? 

We do fix and flips in Massachusetts, and in the past have done new construction.

BTW, that fixed minimum price is 95% of a current FHA appraisal.

So how can I do this given their credit/finances are a mess and could take some time to fix, if they ever do. 1.

I asked if there is a fixed rate offered, and was told that there is...but the rate is much higher.   

A lot of people use private money to buy / fix and then refi with a bank.