I had another borrower of mine do this with intention to get as many homes as possible and just rip rents.. he got 5 years..

I don't see the point in doing it, if we are more than likely going to rip it all out anyway.

they vary from not allowed and serious penalties to state does not give a rip..

He’s convinced we can partner together and be competitive in flipping vs others who get ripped off by contractors taking advantage of investors.

I had a couple electricians come out and they look for 30 minutes and say "you are gonna have to rip out and replace all the wiring.

And it is really highlighted when that person is out of state.To be fair though, these same people likely get ripped off locally...I should also add, to some they have far more money then time.

Others won't even look at the property thinking they are getting ripped off.

A buyer can't just decide not to and then go Rip Van Winkle without any consequences, it's a contract where they agreed to do certain things by certain dates or risk losing their EM, they are not window shopping for bananas. 

Also if you know what it take to repair something then when you own a hundred doors you stand a better chance of not getting ripped off if you choose to pay someone to make the repair.  

Services that you 'can't shop for' are a rip off.