So if you were to lie on your application, by stating you aren't who you say you are, or inflating your income to qualify for the loan, or using someone else's social security number, that is a SERIOUS violation.  

He could try to inflate the repairs, pocket the difference, and then still get the 50/50 split.

After spending a lot of time looking at FCI, we found most of it was overpriced junk with so much baggage, and sellers selling at highly inflated prices.

I think prices are inflated on speculation and it's not wise to buy a house and essentially pay for the speculated future appreciation.

Money not being used is money that's devaluing because of inflation.

This includes whitewashing issues with the property, inflating potential rental prices, etc.6.

In 15 years you will have a free and clear property that is cashflowing significantly, and it's value increased about as much as inflation and maybe more.   

I am on several mailing lists and maybe 95% of what I see is not good (inflated ARV, underestimated repairs, etc). 

(In the process of selling the original house at a decent gross profit but likely less impressive after factoring in inflation, adding back in depreciation, and the time value of money). 

I normally say when you find a deal with the right numbers, positive cash flow.However I believe the market is at a peek, with the economy and politics as they are now pointing toward inflation and rising interest rates if you have cash to invest you may want to wait awhile, there is a good chance the markets will turn in the next two years and the vultures will feast.