don't know, but when you play on someone elses playground, you have to follow their rules or they throw you out - - in this case refuse to work with you in the future.

Most people run out of money, before they reposition a property on a value play.  

It's relationship banking, they don't just want this one off loan... plus you are already talking to the president, play nice with them and they will be happy to be flexible and go to bat for you in the future 

Noob questions are fine, I'd recommend finding the right home, taxes do play a role but shouldn't be a major deterrence.

Thank you @Shawn Michalek and @Anthony Thompson, this is great information.I think this one might be out of our depth, we are relatively new and do not have a lot of $$ to play with in regards to the possibility of rewiring if that is what was needed. 

I was under the impression that when you paid to play you were allowed to self promote.

Even if the seller accepted an offer of 135k, the bank would still need to approve it ... so, if you want to play that game and the ask price works for you, then tie the property up at 135k and wait for the bank to counter with what they would actually accept, which is likely closer to retail comps ... put in your offer expecting this to happen, and it may takes months before they get back to you and it could be at a crazy high price so don't stop your search in the meantime, at that point your offer will have expired so you could accept their price, continue to negotiate with the bank, or walk away. 

ARMs played a big part of the Financial Meltdown in 2008 but still have good use as they provide for better cash flow.

If so, LLC is probably not a realistic option unless you want to risk playing with due-on-sale clause.  

I have played around with the house flipping calculator using the recent sales in my specific neighborhood for ARV.