Hi Jay, no luckily you don't need to be licensed in Colorado to wholesale properties, so that part is fine and totally legal as is in many states.

I'm fine with that honestly, but when it doesn't appraise, it makes me question the renovations and the value they actually provided. 

Once you have a solid cleaner in place, everything else should go just fine.

Doing a Fix and Flip in a flood zone is totally fine, but there is obviously added risk on the exit.

If you've recently had it unclogged and know it was fine when they moved in, yes. 

Maybe you are talking about building more townhome style, which, I have a builder friend that just built a four townhomes and are selling fine, as well.  

Builders do this a lot to add extra potential sleeping area without having more bedrooms than septic is rated for.I have seen people put beds in the loft after closing or even close in this area to make an unofficial bedroom.Just be clear in your pictures and description and you should be fine either way.

My PMLs are people with self-directed IRA who are perfectly fine with 5-year term while earning double-digit returns passively tax-free in their SDIRA. 

I have always been interested in home construction techniques that are different or older.Container homes, these sorts of shot-crete homes, bale homes etc.The biggest issue is not that fact that they will rent, for if they are in the right location, of course they will rent just fine.

Most tenant will be fine with this as long as you explain your reasoning.