I was able to see this with a future depreciation table and compare against the non CS expectations.I'm not sure about recapture, presumably yes this is not ideal and probably exacerbates the current recapture issue. 

How does this compare?

What is the market value of a bed room and a bathroom  for the purpose of Comparative market analysis. 

If you have I’d love to hear your feedback.What other programs out there would you say are comparable?

The no state income tax doesn't really apply when you are comparing to other investment locations.

I’ve been following much of the research you suggested, like inspecting the property and assessing comparable homes in the area.

Not a ton of flipping compared to previous years, other strategy I'm seeing is STR's or rent by the room/padsplits. 

A loan-to-value (LTV) ratio around 70-80% with a straightforward approval process would be appealing.

Get a few quotes and confirm you’re comparing the same coverage.

You could probably do a NPV analysis on that compared to the price of installing a water softener up front.