For example, places like Illinois and Oklahoma have specific rules requiring a real estate license for certain types of marketing.This specifically for flipping land using Transactional Funding.If you’ve done this before, what states have you found to be friendly toward this approach?

Quote from @Pamela Rivas: Hi Natasha,Here are some key points to consider about setting up a Mexican corporation:Setup Costs: $1,500–$3,000 USDOngoing Costs: $1,000–$2,000 USD/year (accounting and tax filings)Benefits: Tax deductions for expenses like maintenance, repairs, and managementBest for: Multiple properties or income-generating investmentsWhile a corporation is ideal for managing multiple properties, it’s NOT required to obtain an RFC.

Since your lender requires prior experience building and selling/refinancing a single-family residence (SFR) on your own property, you may need to adjust your approach.

I also require additional security deposit and sometimes a guarantor if they were approved in this manner.I also agree that this situation sounds like a pattern not a one-time mistake or short term tough situation that caused this.  

These are typically interest only and require a payment of 1-4 points up front depending on your area and the PML.

Because it's required by law

By leveraging our expertise in pricing and buyer demand, we identified a deal that required no renovations but still yielded solid returns.

You prpobably don't care about Ohio, but their requirements might be instructive.You can only file January 1 through March 31.

You'll have to meet higher ratio and FICO requirements. 

Instead, it reduces the seller's net sale proceeds, which may impact the amount required to be reinvested to fully defer capital gains taxes.For the buyer, the credit lowers the property’s basis rather than being deductible as a repair expense.