Pool Repairs are allowed.Improvements that do not conform to the surrounding neighborhoodAny new construction including room additions.Landscaping or similar site amenity improvements.Rehabilitation activities that require more than two payments per specialized contractor.Major rehabilitation or major remodeling.Require plans or architectural exhibits.Results in work not starting within 30 days after loan closing.Borrower is unable to occupy at closing or within 30 days.Television antenna and satellite dishes.Additions or alterations for commercial use.SFR conversion to a 2 unitAny structural repairs or renovations that are not foundation or roof repair.Parties listed below are not eligible to perform the work: BorrowerFamily MemberBorrowers EmployerSellerRealtorAny Interested party to the transactionMaximum number of contractors: 32 Draws, 30% initial and 70% final.Contingency Reserves A contingency reserve equal to 10% (or may be higher depending on scope of work) of the total costs of the repairs and renovation work must be established and funded for all mortgages to cover required unforeseen repairs or deficiencies that are discovered during the renovation. 20% contingency reserve required when property needs structural repairs, or where utilities are turned off.

The minimum requirements for FHA are: Safety: The home should protect the health and safety of the occupants.Security: The home should protect the security of the property.Soundness: The property should not have physical deficiencies or conditions affecting its structural integrity.I would assume the bank wouldn't loan to you because the floors are unsafe and may lack structural integrity. 

While under contract, get the best inspector possible and demand credits or price adjustements for any major capital improvements needed or deficiencies that will cost you money.4.   

If I was underwriting the deal, I would not count your qualified retirement contributions against your DTI, but since you can't touch it without penalty until you're 59 1/2 and since I typically can't come after a retirement asset should the deal go South to collect the deficiency balance, I'll want to make sure you have the disposable income and income stability to cover the Capacity to pay me back.

Every investor has a weakness or deficiency of some kind. 

In my opinion you’re most likely to find owner financing when the property is overpriced, in a bad neighborhood or in a bad economic area, in remote locations where there are few buyers, or have severe physical deficiencies. 

Code §§ 1950.5g 4A requires list of damages/repairs provided if over $125).I find these charges unreasonable due to the following:1) we requested for a pre-move out inspection for a chance to correct any deficiencies, which I believe is a tenant's right.

strategic foreclosures were rampant.. but remember also that the feds halted deficiency judgments during that time as well. 

Also be aware banks are not as lenient as they were during crisis and if this is in a deficiency state I have heard they are going back after borrowers for that deficiency.

These are the sure ways you can mitigate some of the tax deficiency.