In the latter example, the preparation is the act of preparing a legal instrument for another and clearly constitutes the unauthorized practice of law.” - Supreme Court of Ohio, Advisory Opinion UPL 2008-02, 2 (2008) (emphasis added)Practice of law includes, “the preparation of legal instruments and contracts by which legal rights are secured” as well as “conveyancing, [and] the preparation of legal instruments of all kinds.” - Land Title Abstract & Trust Co. v.

I would assume if a seller pulled a stunt like I mentioned it would certainly constitute a breach of contract and you wouldn't be on the hook.

Your state may allow you to put a section in that states you will keep the full security deposit in the event of abandoning the property, which is constituted by actions X, and/or Y, and/or Z, and also allows you to attempt to recover any losses in rent until the unit is occupied again, in addition to whatever damages you had to correct.

Would this not constitute fraud in how the property is represented to the loan company?

New paint and carpet will not typically constitute significant improvements (I am also a little surprised at the cost hitting $20k for paint/carpet), but if you believe the property is worth in the range of $320k or so, then a 75% LTV refi will put you in a position to recoup your rehab money.

The fees became part of the rent then due and if unpaid would constitute a failure to pay rent. 

Their lack of patience does not constitute a bill on yours. 

Most agreements or contacts do not constitute a sale and would not end the holding period.

If you are adding value through sweat equity, you have problems other than just lending issues, as that would constitute a prohibited transaction.

I just see what constitutes a "deal" having lower margins for profit.