That is IRS trying to narrow down the number of returns they need to mess with.

Hi Tariq,Which areas are you looking at and how much are you looking to put down? 

@Brandon Croucier is giving you solid info on finding an experienced and honest mortgage broker who can shop your exact scenario both ways, with the rehab and without and break down the benefits of each with all fees so you can see an apples to apples comparison. 

@Duarte MarquesPossibly but highly not recommendedFor those with no real estate experience or experience in taking on debt, it’s not easyTo do it also with little to no down payment or reserves in most occasions will end in disasterReminds me of when in high school a friend used to let his dog drive his car.

If I were down there I would think about setting up a food truck or 10 or 20 and serving breakfast burritos 24 hours a day with some good hot coffee.Just my 2 cents.

I want them to see the total picture and then keep whittling down to where they get close to say a 5% error rate. 

I offered them 10% down, interest rates favorable to me, amortized for 30 years, but with a balloon payment after 3-5 years.

As Jay noted, why don't you focus you energy on delegating tasks to employees. you may find a pwrtner who has similar motivations today, but it's almost guaranteed that your interests will misalign down the road.

(So unless they sell for much more than they paid they will only get a small percent of their down back, especially after selling costs,) but you did say they were getting a discount.

do not use a line of credit for a down payment.