I think your plan is sound as well.For the distressed 2-flat, would you fix it up and then move into it?

And the horses are $150k each, and they have their own training cattle, and on and on, So each cowboy/cowgirl looks like they have an easy $1 mil wrapped up in their rigs and livestock alone.PM me if you want to discuss more.....https://www.biggerpockets.com/forums/530/topics/1167610-i-th...https://www.biggerpockets.com/forums/530/topics/1156812-unus...

I would also buy from stores like HomeDepot since it is easy to find replacements if something breaks.

Looks like a good opportunity, but if it sounds too good to be true - then it's probably Hometown Buyers Club lol.

I now have a $0 transaction which looks odd.Option 2) Keep the original expense for the previous year, but add the refund for this year as income.This sounds cleaner, but I’m not sure how the refund should be categorized.

While nothing in this business is easy, this strategy is certainly easier than wholesaling. 

@Soroush Akbarzadeh sounds like you need a new CPA.

Sounds like Fannie Mae made improvements to the home but after their due diligence did not want to put any more money into the home. 

Wealthfront is great / super easy to use and offers 4.30% APY

However while it sounds like your CU has an appetite for helping you do 100% levered financing you should do as many as you can before they come to their senses :)..