I would also imagine this will need to be address in the next couple of years, and a tree needs to be trimmed which is near/touching the house.The CAP rate right now it 12.41% with a purchase price of $55,000.00.

I think this is a great idea to receive multiple cash flows to hedge against mortgage taxes and insurance and prop management but I imagine you'll be managing it .

I can't imagine how he'd be making enough over 24%ish annualized to be able to provide himself with a return in excess of this.  

I don't know VA laws, but I imagine you'd either need your own GC license, or you'd have to hire someone who is a licensed GC in the state -- it's this person who would pull your permits and be on the hook for all building code compliance issues.As for private lenders, these are typically people you know who are providing capital based on their relationship and trust in you as an investor. 

I would imagine a cash out refinance would work but I am curious to see if others used this particular strategy or if this is even possible through financial institutions.  

I can't imagine why I would start a thread about that, as why would I be asking the community on advice about it?

Like who would imagine I buy my paint from Glidden at 65 when they are retailing it for 135.

I imagine some people don't want to wait 6 months for their house to be fixed and would rather buy a new place much sooner.  

Imagine how much more difficult it will be to save up 20% while paying a mortgage alone vs saving up 20% while having tenants help you pay your mortgage.Its the way I got started investing in buy and hold real estate coming absolutely nothing. 

I'd imagine based on the process described above that it would be less trouble to take the note out of a "for sale" list for a few days in case your exit strategy came through.