And to any wondering, no, I don't loose a wink of sleep over using legal tax strategies. yes, I think those who can utilize it have earned it and don't owe a thing to anyone else.

However, I am curious to know your reasoning behind considering bidding on a property that requires extensive rehabilitation, including demolition.

The three ways to handle the risk are (1) gaining knowledge and experience in both investment in general and in the area you’re investing in specifically (2) extensive due diligence and when the inevitable bad outcomes occur despite (1) and (2) then (3) diversification.  

@Bruce Schussler   I am always suggest my borrowers stop at 60% loan to value when utilizing this strategy.  60% is the loan to value where the loan would qualify for the best possible rate.

Assets identified in this study include:Infrastructure and Site Utilities: signage, site lighting and utility sinksLand Improvements: sidewalks, landscaping, fences and parking spaces50% of the total depreciable basis was classified as 39-year class life.

I’m new to house flipping but have extensive experience as the owner of a successful property damage restoration company.

Like aircraft checklists and vehicle operators manuals (the -10s), one can benefit from extensive research, trial and error, and deliberate improvement principles gained by the many that have gone the path before. 

Once you have a shortlist, sign up for an account with each one and test them extensively to see how they function.

Like I said, we only have utilities available in the front of the property and no current permanent structures on the property.  

You can try to research to make sure the utilities are there for sewer, water, electric, etc.