To answer your question: for a relatively small multifamily (I would label this about 20 units or less), yes it is common to not get financials until LOI, and there is very limited information that can be derived from sellers financials that should effect value anyways, because how they operate is probably very different than how you will operate.

I would use an accounting (I use quicken) software to then manually label those expenses as related to your portion of the property or the "rental" portion.

We never gave extensions once the file was labelled X.

If you don't look like a long-term investor to the IRS, there is a chance that they could label you a "developer/flipper" and treat your property as inventory rather than as a depreciable capital asset. 

If the IRS labels you a "developer", which seems like a real possibility given your investment model, then your properties switch from "capital asset" to "inventory". 

But we had to submit plans with it labeled as an office, because my jurisdiction requires bedrooms to be 150 sq ft, and my office (due to moving a wall) is 135 sq ft.More importantly, I think this layout would turn off a lot of people.  

She could be doing this to also let people know the program is great but she does not want to be labeled a shill. ?? 

Your input is absolutely crucial – it's the secret ingredient to REI's success. 

I use a filtering system based on the house number and street so every email for a particular transaction skips my inbox and goes in to a specific labeled folder.

There can be good investments in areas I have labeled bad and there could be bad investments in areas that I have labeled good.Here is the list:Highest risk, highest crime, highest turnover areas:64130 – listed in 2009 as the “murder factory” of Kansas City - avoid64129 - avoid64128 - avoid64127 - avoid64126 – avoidHistoric NE areas:64124 – both good and bad areas for renting64123 – both good and bad areas for rentingKC Downtown:64106 – mostly commercial & condos – great area for rentals and flips64108 – mostly commercial & condos – great area for rentals and flipsMidtown:64109 – both good and bad areas for rentals64110 – both good and bad areas for rentalsWestport/Plaza/Waldo/Brookside area:64111 – great area for rentals and flips64112 – great area for rentals and flips64113 – great area for rentals and flips64114 – great area for rentals and flipsSouth KC/Grandview/Raytown area:64030 – mostly good rental area64134 – mostly good rental area64136 – mostly good rental area64139 – mostly good rental area64138 – mostly good rental areaLee’s summit Area:64081 – great area for rentals and flips64082 – great area for rentals and flipsBlue Springs Area:64015 – good area for rentals and flips64014 – good area for rentals and flipsIndependence Area:64052 – mostly bad rental area64053 – mostly bad rental area64055 – mostly good rental area64050 – mostly good rental area64056 – mostly good rental area64057 – mostly good rental areaNorth of the River Areas:64116 – mostly good rental area64117 – mostly good rental area64118 – good rental area64119 – good rental area64151 – great area for rentals and flips64152 – great area for rentals and flips64153 – great area for rentals and flips64154 – great area for rentals and flips64155 – great area for rentals and flips64157 – great area for rentals and flips64158 – great area for rentals and flips64068 – great area for rentals and flipsI hope this can help some of you new investors and maybe some seasoned investors as well.