Assuming rents will increase surely it will cash flow at some point correct? 

Asking in the correct forum will get a better response.Need a spreadsheet or form?

From my basic understanding it would make sense to change it to a rental and then do the remodel so I can claim depreciation on my cost, is this correct or not? 

But, he has no ability to take any corrective action he feels is necessary or beneficial.  

So yes, correct, the borrower is the USER not the owner, the bank/lender is the "owner" right.

Also---you need to make sure whoever did the rehab did it correctly (no point in paying a premium price is the work isn't done correctly)...lastly if you pay for a turnkey property...how do you know the tenant is paying a market rent and is a good tenant (credit score wise, payment history wise) etc?

If I understand correctly you'd be purchasing the land, and improving it and splitting it into the appropriate "buildable lots". 

You are planning on buying cash flowing properties correct? 

Asking in the correct forum will get a better response.Need a spreadsheet or form?

So saying people can’t do the rehab or don’t have the money is not entirely correct.