Protect yourself by having an addendum included in your agreement that the funds will be returned to you in full under the following conditions: [you fill in the blank].I'm not sure what TREC is, sorry.

When I was telling them about my strategy I saw a lot of blank stares after about 30 seconds of speaking.

The judge (being ignorant of repairs) always agrees....and on occasion won't require the tenant to pay rent into escrow.

If they point blank ask a specific question we honestly answer.  

Ask them point blank how do they determine if the applicant is actually going to be the one living in the property.  

@kumar @Kumar Jeevan I know that @Michael Blank has a good one on his site too 

Okay maybe I'm drawing a blank here but from my understanding when you get financing to buy a house, the bank/hardmoney or whoever gives you money just to buy the house but not to renovate the house and make repairs.

You can get a blank realtors form online from your state realtors association and use that if you do not have a simple buy sell agreement. 

Account Closed  that's quite a robust underwriting critera.. if someone makes all of those points they probably don't need to borrow money.. they all ready made it  LOL.. although I easily do but on occasion I will borrow from private or HML when I have my bank lines maxed out.. rates are dropping like a rock too for hML on west coast..

Now, there have been occasions where I have bought properties that were newer, and therefore needed less of a renovation.