I only ask because I managed a profit center for Lumber Liquidators for about 2 years and I was able to get 4 and 5 mm click vinyl for $1.59 before employee discount. 

Hopefully this will clear things up:You are correct with your understanding that you can't write off any costs related to inventory (the house) - whether that be the cost of the house, or items to improve the inventory (like lumber, paint, contractors, other flipping expenses).However, if the cost does not relate to the purchase or improvement of inventory (the house), it can be written off as operating costs, as you noted.

He expressed to me that his group of investors is unloading their properties and they will have 8 properties to sell.

@Joseph M. hey, so the situation is this person that sold me the property is an investor that unloaded many properties in the United States a few years ago when she got sick. she is elderly now and needed to unload the properties in Mexico and really wanted to do it asap . we spoke about the deal for months and at the last minute she cut our original price by 1/4. she saw I was committed after I got my dual citizenship and I know she was trying to help me out.  

Have someone sign a contract to cut down the lumber and take it, for free, but they can't sue you if you're hurt.

These guys bought up portfolios a few years back, by and large with 1031 moneys, waited for the cap rates to compress, and now they are unloading. 

This also didn't mean that we didn't let them park temporarily in the driveway from time to time to load/unload things. 

If you have a Lumber Liquidators in your area, they have a huge Spring Sale on flooring this week.  

So if something in their lives forced their hand (death, divorce, bankruptcy, etc) to unload the units at a deep discount it could in turn tank the value of the one unit that I was going to own. 

The price increases are 25-55% on most line items (drywall 55%, lumber 45%, electrical 40%, etc).