Traditional lending you definitely want to get preapproved.

Most traditional banks will not finance a secondary FHA loan, you would have to go with a smaller portfolio lender, credit union or mortgage broker would be your best bet.  

Traditionally telling a seller they will receive all cash has just meant they will be getting all cash at the close of escrow, just cash, nothing else.

Send the agreed upon payment with paid in full on the line item on the check.

That way if your friend loves the house and wants to stay long term you can get your money out.I would recommend getting a price that works for traditional financing for your friend and using owner financing if the owner is a little more flexible - or lower but reasonable rate.

The important item in that budget is "RE Investing Money."  

The only things you don't include are items specific to financing - essentially, Principal and Interest.  

But don't discount the opportunities also to either convert investment property to primary residence or to simply  use the deferred tax dollars for your own returns throughout your living life.The primary residence conversion benefit has received a hair cut in recent years but there is still significant opportunity to eliminate a lot of tax in that method.Doing an amortization can show you the benefit of keeping the tax and using it for your benefit in the same manner as a traditional IRA lets you compound your return pretax using the tax dollars.  

I just personally took a look yesterday and I mean in my opinion the fire damage is what will most significnatly impact the rehab costs but it is also the strongest leveraging item in the buying price.

Not getting a report now could costs you many times over later.Now the timing of when you spend that money on that item depends on other things.