This used to be a non-issue for FHA buyers up until 10 years ago when HUD stop allowing buyers to use their appraisalsKeep in mind your agent is not dealing with HUD directly. 

Knocking off $4k for that additional bathroom let's say it's $170k ARV, looking at this for a flip and using the 75% formula and a $120k buy price that only leaves $7500 for a reno budget - I'm no expert but I'm pretty sure it'll take more than that! 

When I speak to finance institutions, I am only offered non-conventional loans for investment properties which require high down payments and significantly higher interest rates.

More broadly, would be great to connect with local experts on this forum. 

I.e, you used them for non CapEx/vacancy reasons.

Beyond that, you need to become an expert on labor and material rates in your area or get connected with someone else that is. 

I believe that if the non-signing spouse had an interest in the property burdened by the easement, then the easement interest is not insurable. 

Not sure if Eddie Speed is still around and teaching out of Dallas, but I used to hear him speak years ago and he seemed like he is/was an expert.   

@Ahmed MoustafaThe general Fannie Mae guidelines you mentioned are for non-renovation loans. 

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.