However they are slow and they will do their research to determine valuesWhoever the taxing authority is, they will look at the value of the property in its current condition, then subtract foreclosure costs, marketing and closing costs to arrive at a net value to them.

Abdenour, There are several options other than a Phase I if you want to get a feel for the environmental conditions of the property.

We can use off market homes for DSCR, no requirements besides that it is legally in livable condition.

Now that the 5% down conventional loan program is widely available (since November last year) I generally recommend using that as opposed to FHA because FHA comes with minimum property condition standards, the self-sufficiency test, and it's less attractive to sellers.

First Goal: Get it in rentable condition ASAP.

I recently found a property on Zillow that looks to be in good condition (built 1940s) and has a finished basement that could be rented out as a Mother-In-Law unit (separate entrance, kitchen, and bathroom) while my partner and I live upstairs.

They may use different methods to establish value based on market, conditions, and availability. 

You really can't control market conditions.

Market conditions and timing is crucial to a successful exit. 

Time- he's likely putting up hard money on day 1 and then having to remove conditions in 18-21 days.