If I was to take out a 15,000 loan and take it to a private money lender ( I personally know one) which in return he would lend me 200,000 for a purchase of a home.

Others, I assume, purchase private insurance for their family.

Also, how often is an application fee required when applying for financing with private lenders?

Sadly a lot of places are putting the upkeep cost of areas located near private property on the owners of that property.

Purchase a home that needs small updates that could be an easy flip in value and stay there while you renovate, then refinance or remove private mortgage insurance, followed by renting it out.

Nita, the Home in Morgan City is in Bigger Pockets "Market Place" and can't be discussed in this forum but, would be glad to discuss it with you by phone, e-mail or through private messaging

Jeff's been featured on Bigger Pockets podcasts (#241) and has invested extensively in the Indianapolis market.   

Private loans from ma and pa lenders are, in my opinion, the best way to finance up front (unless you can buy for cash).

But if you do have private resources then let's use those FIRST. 

You would need to initiate the contact yourself by sending a connect request and a private message.