I would pass as a first time investor - you might find surprises in rehab and get too close to the ARV.Too many unknowns, imho.

It is a single family, one story home that the previous owners were living in.The property in the current condition will not pass a 4-point inspection, but will within a matter of weeks, once we can close on it.

Everything is in writing.I only sign the hold deposit after they pass a credit and background check.

To be certified they had to pass a battery of tests and have a code of ethics to follow.Paul

Also you have to have a licensed contractor that can pass a background check do the work.

That also means they may also pass a law at any time. 

Most people will qualify with 3.5% down and the rates are pretty solid.As someone mentioned above the property would need to pass a “self sustainability” test.

@Frank A Castro - So you are trying to fund 100% of the purchase and need it to pass a VA inspection.  

Unless feds pass a safe banking act you will be handcuffed to private money funding (there is talk of this progressing which will be huge for the industry, not only for RE side but for operators who have to currently fund everything, no line of credit against ARs is a big squeeze on operations which trickles down to the landlord) if you have a current mortgage in place you will be likely be at risk of having your note called (doesn’t always happen, but is a risk).

Pay the couple hundred dollars, pass a test.