Dependent on your risk tolerance, the general answer is to leverage highly given the low interest rates and preserve your cash to continue to invest and grow your portfolio.

If not, they can claim "fraud"...and good luck from there.This is a clear case of why you need asset protection and why you should do rehabbing under an LLC (or better, a Series-LLC) that you put in preservation after the sell.I'm not a lawyer, nor CPA, so take this with due diligence, but I hope it helps.

You may have to pay an extra point up front, but you can get the bank to finance 80% of your expected rehab and preserve your cash.  

I know that it used to be common to mix diesel with used oil or tranny fluid what ever was handy .It was used for termites carpenter ants any other wood munchers they drilled into the ground and also sprayed exterior of buildings and wood floors of trailers to help preserve the wood.

I'm not really a big risk taker, and at this time, preserve my capital is one of my top priority by playing it safe.

As investors, rehabbers, and developers, I feel its of utmost importance to preserve the culture and history of those who have never turned their back on the city - the old Detroiters, and make the new prosperity and opportunity available to them as well.  

The only play I see at the moment is asset preservation.  

I would focus on buying a handful of high quality B properties (for the optimal combination of cash flow and capital preservation/ possible appreciation) with low turnover and low maintenance costs rather than many lower-tier properties that will likely bring more issues, especially if you have to deal with Section 8 housing authority bureaucracy. 

The new tax code adopted and put in place for 1/1 specifically preserved 1031 for real estate transactions. 

Originally posted by @Steve Vaughan:A different perspective than all about cf if you're in an expensive market or are in more of the capital preservation stage is to buy for equity capture.