This is a very common way for people to investing using their retirement accounts.

Quote from @Sam Wilson: We invested via a retirement account.

A lot of rehab lenders will account previous reno expereince when it comes to terms.

However I like to run my numbers conservatively and account for cap ex, vacancy, maintenance reserves 10/5-7/5-7% respectively.

@Albert Gallucci as many have pointed out, in the commercial space of 100+ apartment buildings and offices, property classes have some pretty decent industry standards.We started applying these to 1-4 unit properties around 10 years ago, which you can verify on our blogs, because we saw too many newbie investors not properly taking into account things like, neighborhood status, tenant pool, property condition, etc.Unfortunately, there's no industry standard for this, but you can use some basic logic to think your way through your own Classifications.

Biggerpockets has a ton of free accountability groups which will keep you on track for your first investment and also teach you along the way! 

Actual cost takes into account depreciation so complete destruction of a property could leave you under water in terms of the amount paid for the loss.

Provide a detailed accounting of deductions, along with the invoices, to show you’re acting in good faith.

My motto, "Honesty, Integrity, and Accountability," has always been my guiding principle—not just in business, but in my personal life as well.

All deposits were made directly to the builder/seller's escrow account, with the seller as the beneficiary (please refer to your escrow letter).I am committed to helping resolve this issue between the seller and buyer.