Any and all of those could be health and safety issues and could stop a section one clearance, rendering the home not financeable by traditional means.

Nothing was signed and there are no legal remedies involved this early in the process, so no harm done should things not work out.It's not fool-proof but it's less risky than most other aspects of REI  There is the rub...YOU may one that isn't hurt but, putting a homeowner through the emotional ringer with your assertions that you are going to save them from foreclosure, put money in their pocket, and increase their credit (Your quotes, not mine) as a selling point, only to back out if your interests wane somewhere in the process, will cause harm.I'm guessing the property must not be in New York or other areas of the state that require you to be a licensed foreclosure avoidance consultant or that, you have a written contract before any consulting services can be rendered (You did say you have nothing in writing if I read correctly).

Acquire with hard money, fix, put in a render, re-fi/cashout then repeat.

Once services are rendered, the chance of collecting fees or payment decline...greatly. 

I believe you need to be licensed in all 50 states if you are accepting payment for rendering this service.That said, I would definitely get everything in writing so you are both on the same page.

And post-close, compressing LTL means bringing rents to market and thus whatever was shown on the rent roll and T12 is now rendered useless. 

What this means depends on (1) the way the actual contract is written (2) whether the CFD is recorded or not (3) the state laws in effect at the time the CFD was executed (4) the state laws in effect now and (5) in Texas, as in some other states, what percentage of the sales price has been paid.Unless an investor is VERY familiar with the laws of a particular state, it is imperative that an experienced, knowledgeable attorney render an opinion. 

Of course most won't show or a simple case of non-payment and are adjudicated within a few minutesHowever, it is not uncommon for a contested case to be reset if the judge thinks extra time will be neededWhile we all know what the ultimate result will be, the judge might want to verify deeds and such independently of documents furnished by either party before rendering a decision.  

The 2nd story has already had renderings drawn up for residential units.

Financing the property does not negate or render useless the use of cap rate.- I would question the use of rent roll in calculating the assessed value.