I deal with both credit unions and large banks.  

7.99 % i get that but 4.99  is better than any bank i deal with and those are the best rates. 

Ideally rentals are held forever.Pure debt scenario;   cash guy makes a loan to you for purchase plus rehab at some fixed interest (4% to 8% you have to work this out) for some ammortization period (10yr to 30yr) with or without a baloon. 

Blowing 65k cash on a property is not the ideal situation since rates are so low.

My advice on this sort of thing would be to stop into the local building department, explain the situation and come to them as someone "trying to do the right thing in a non ideal situation". 

We want the future primary home to ideally have a mortgage of less than 400K.

@Nicole A. yes I would ideally have two copies, one english and one spanish have them sign both and keep copies of each

Ideally the value add exceeds the cost by a significant amount (our goal is value add is 2 times the cost of the rehab) and results in a significant rent increase.If the analysis shows that a rehab is not going to add much value add beyond the cost of the rehab I would use the money to purchase a different investment property. 

Right now I'm into the BRRRR strategy so, ideally, I have very little, if any, of my own cash in the deal.

That way I wouldn't have advertised the fact that I have six figures of ideal cash along with my full name on an indexable website.