They will NEVER reduce the amount - period.

On the rehab I'd just get a few GC's during the inspection period or prior to offering.

Period.

Things I'm confused about: - Where should I start- Can I refinance, sell and buy within a short period of each other?

There was a really strong correlation to the fact that these homes often sat vacant as distressed properties for long periods of time prior to us purchasing.

If you have a good building inspection done during your due diligence period it can help you discover much of what may go wrong with your property initially but there is no guarantee other things may not happen.

@Lotta Rozenson For real estate investors, bonus depreciation is available on assets with a useful life (e.g. period asset takes to wear out) of 20 years or less. 

Complete an application with a few lenders in a short period of time to get some concrete numbers going.

Previous owners have no federal "protecting tenants at foreclosure" protections; however, some states may have a redemption period (Like North Carolina) where previous owners may redeem the foreclosed property by paying an upset bid.

But, the owner occupied property is different because you will likely have to use a conventional loan which requires 12 months seasoning (waiting period) to use the new value but of course that 12 month would start from when you buy the property so it will obviously take you some portion of that 12 months to build the house.