This automatically increased our cost and required additional creativity on our end.The rehab loan process is a BEAST.

I have never seen one of these automatic parking garages before, but that is an awesome concept!

Yes, if he wants to borrow money from a HML or bank then it needs to be in an LLC.If they're borrowing from a private lender, then no it doesn't need to be in an LLC.If they're assuming a mortgage and rehabbing it with their own funds, then no they don't need to do it in an LLC.If they're getting owner financing and rehabbing with their own funds, then no they don't need to do it an LLC.Also, just doing a deal in an LLC doesn't automatically protect you from liability or litigation.

Is the property foreclosed and automatically mine?

Based on the awesome input I got here from everyone, I've updated my CapEx and Repair model - takes into account lifespan over 30 years, and if the age is within 85% of its lifespan, it puts the cost in the replace column, and automatically reduce the capex lifespan cost by the initial replacement cost, otherwise it just takes the replacement cost per year over the span of 30 years. 

The steps you're taking are good ones in order to establish a FICO score, but as you already said . . . it'll take a while.There is an alternative process to this "automatic underwriting" called Manual Underwriting in which the underwriters are able to use manually input different data into the loan process and can often approve financially healthy individuals who can't get through the automatic underwriting process due to "no credit score."  

Are the taxes automatically withheld like a paycheck from a W2 job or do I need to do that math myself and make sure I leave that money aside for taxes next year?

I'm curious if underwriters have any algorithms or programs that take care of this automatically based on a few inputs or if they largely pull comps manually? 

It's not automatic but if you have a good payment record and the comps support the value it shouldn't be a problem, people get it taken off all the time.3.

If you guys can find a 4 plex with a similar cash on cash ROI as a single family home or condo do you automatically go for the 4 plex and add those 4 doors to your portfolio?