If your lender is only working with a "list of qualified contractors" thats against the 203k guidelines and a huge red flag. 

Just make sure to document how you arrived at the land value in case of IRS inquiries.If you’re unsure or want to avoid any red flags, consider consulting a tax professional to ensure you’re compliant and optimizing your depreciation. 

That raises a ton of red flags to me.

Also remember the time these returns will take to amend along with the possibility of opening up audit periods/red flags with the IRS due to amendments.Doing this yourself on turbo tax likely won't be your best bet considering all of the details.

I think there is another case study of using federal land for affordable housing in DC that has been held up with red tape for decades.  

If he lived in the same place for four years, that should reflect on his credit score.I think you've found enough red flags to justify denying them.

@Jake Barrutia I personally see this as a huge red flag too.

Similarly if you feel the material pricing is marked up by too much, that's similarly a red flag.

A conventional loan may come in slightly cheaper, that's true, but the red tape on conventional mortgages is excessive to say the least.No Reporting on Personal Credit: DSCR loans are kept off your personal credit profile, which is perfect for keeping your personal and business credit separate.

Also, look out for red flags like neglect, possible liens, and unpermitted renovations.### FinancingMake sure you have your financial matters in order.