Obviously if you have the cash to buy without a mortgage and have extra then, good for you!

What if it was a 2 Bedroom/1 Bath that was marketed to the open public and the person who took it, happened to be a single individual.

You can use /SF costs on individual scopes of a larger budget, but it will be near impossible to just say the "average" house needs $45 (or any random number)/SF to renovate.

Don't buy individual REITS as you are playing with fire. 

In the instant situation I would be interested to see whether the title company's "approved" list of notaries happened to be staff on hand who make a few extra hundred $ for the title company.

Also, for older homes, do not forget the likely extra expenses for electricity/gas due to them being leaky. 

Just to be safe I would have an extra "renter insurance" notice that your renter's sign that says you recommend getting flood insurance so you are covered.

If it's a great deal, you could get extra back.Also one thing to mention, I'm not 100% on this but if you refinance using a owner occupy product you will be required to live in the property another year.

Legal conversation starts with examining the answer to why you believe you do not want to purchase the property with your relative as a tenants in common as individuals or in an LLC. 

3 Reasons this can't be replicated making extra payments on a traditional 30 Year Fixed:1.