I have fixed more of these than I can count.

@Cameron Belknap FHA loan rules in HUD 4000.1 mention not counting the basement as part of the Gross Living Area; however, part of the FHA requirements found in HUD 4000.1 includes a section on “converted spaces” which states:“The Appraiser must treat room additions and garage conversions as part of the GLA of the dwelling, provided that the addition or conversion space…is accessible from the interior of the main dwelling in a functional manner; has a permanent and sufficient heat source… and was built in keeping with the design, appeal, and quality of construction of the main dwelling.”Furthermore,“The Appraiser must analyze and report differences in functional utility when selecting comparable properties of similar total GLA that do not include converted living space.

Harness the expertise of your network--and count me in!

I guess my initial plan when analyzing this was to only loan for the asking price of around 115k then rehab comes out of pocket but obviously still counts toward the COCROI.

I count $41K total credit card balance. 

Turns out most of the water was for flushing toilets at 7.6 gallons per flush with the old toilets, and I counted between 6 to 8 flushes a day, costing the dollar.

Yes, that's a professional liability exposure, and it would count as an "error or omission." 

Buy a property that cash flows today, never count on what might happen down the road.  

Depending on how you add up your ROI (what are you counting in that for expenses and income), I don't think getting 20% with turnkey is realistic.  

They will consider DTI but will also, usually, count some, if not all, of the rental income.