I was thinking of finding a fixer first and offering it to investors via direct mail (pitch is: investors buy off-MLS, the sellers pay me a minimal commission - so they net more, but I get the subsequent remodel listing from the investor. ) But, it would mean I have to lie to the seller, claiming I have an investor, when I don't. 

Where you get in trouble is usually when you try to raise money for business enterprises or investment purpose.

Is there a bank or lender out there that will allow him to refinance the home and subsequently owner finance it to a buyer? 

The refinancing idea only works on a relatively quick time scale if, for that same $120k subsequently appraised value, you only paid $90k (or less), all-in!

Basically expenses incurred to operate or expand an existing enterprise could be deductible.

RELIANCEONRENTALINFORMATION:Outside of a sale-purchase scenario, this Lease agreement is often executed subsequent to Tenants completing a Rental Application and their rental application being accepted.

(You will replace carpet on subsequent turnovers.)  

Therefore, you shouldn't file Form 3115, Application for Change in Method of Accounting, to make this election or to stop applying the safe harbor in a subsequent year.

She was served an eviction notice, and then subsequently thrown in jail for assault. 

It does not prevent the owner from a subsequent claim against owner if there is proven negligence.