@Wayne Brooks I say that to be safe.

Don't get caught in the trap of not wanting to hurt your cash flow, when that equity could be better utilized to generate more cash flow in a safely leveraged additional investment with all the other associated benefits of owning more property(loan pay down, depreciation, chance for appreciation, etc.).

This will be my first flip so id rather be safe than sorry with everything and do my due diligence.

I am looking into purchasing my first property in pittsburgh and rent it out as long term investment.I have following hopes/strategies:- Safe area (B/B+)- Reasonable cash flow- Good appreciation potentialI am thinking following locations (which can totally be non sense)- Attract high income workers (close to IT hubs?

I mainly want to know if the area is safe and not a war zone?

Option 3 - A safe and good way to go.

@Kendra Mattson look up cost segregated depreciation and de minimis safe harbor election and/or read my blog.

Quality providers of such plans will provide ongoing support to help you understand the IRS rules so you can be effective and safe putting your plan to work.  

You should be safe with Bosch and Dewalt.

So here is what I'm thinking could happen:FHA makes us  get an architect or engineer to confirm the single family plans making sure the structure is sound and has been converted safely.