What IS criminal is stringing someone along for months, holding their appraisal hostage, and not reimbursing them for expenses when there is NOTHING WRONG with the loan.

That one pot of money can be replenished or reimbursed with a Fannie Mae cash out refinance once you have been on title for 6 months or more.

In that case, negotiate a closing credit from the seller, do the work now so it can be financed, and then you'll essentially get reimbursed at closing.  

You can even collect the initial security deposit with it, as well as any utility bills that need to be reimbursed.

Its clear that our due-diligence fell apart and we were lured by "low fees" and the promise of swift and easy transactions.... but not one of us that are seeking reimbursement would have EVER entered into any financial arrangement with a company like this if we had actually looked behind the curtain.Who builds a business that processes millions - and Im going to guess that its run in a basement or garage.

So my question is, do you report the cost of the roof to your CPA when you are reimbursed from the bank for such, or wait until rehab completed and loan closed out? 

One thing I think people should ask them self is, "if they were contractors would they feel comfortable spending their own money to build someones dream, in hopes of being reimbursed?".  

In most cases, with small mom/pops, even in a net-lease situation, you still pay for your own insurance, and just have the tenant reimburse you.  

Most times these are paid on an incurred basis, meaning you have to spend the money upfront then the insurance will reimburse you.  

Oh, and they reimbursed me about $75 for the usable fuel oil that they'd pumped out.