I've never spent money on inspections/environmental before having the property under contract.

I remember a buddy who once represented a client in the Santa Cruz Mountains.. this client turned an old barn into a shared art studio and invited local artists to rent the space, which ended up boosting inccome in ways they never imagined.The Redwood market can be tricky because of environmental restrictions, zoning quirks, and limited inventory.

For larger properties, some of our clients run another cost segregation study at the time of sale.2) Partial Dispositions - Taxpayers can carve out and dispose of components removed or demolished from a building.

Its this sharp depreciating component which has always prevented such a purchase.  

Principal Paydown:  Cash Flow:  Tax Benefits: Savings from depreciation and interest deductions.For a deal to make sense, at least three of these components—home appreciation, cash flow, and principal paydown—need to be strong.

Here's the key components to calculate your tax liabilityAdjusted cost basis - Is the purchase price, plus capital improvements, minus depreciation.

They do require these to be done on Primary Residence, and they probably do have a credit component, but may not have an income component to underwriting.

You should be able to find local builders that will finance the construction component of your new build, however! 

Big lenders like Flagstar that have a servicing component are currently using their servicing business insight to go after refinance business internally.

However, expect greater transparency and heightened consumer awareness that has come out of media attention and NAR settlement to impact the listing component of seller agency as well.