I tend to say no to the wind, but look at costs vs coverage and the language used.Best of luck!

In my opinion, since the tax code is open to interpretation, I interpret as much of my costs as repairs unless something obviously falls into the definition of asset.

Typlcally, a lender is going to lend 75% - 90% of the Cost of the project (property price plus rehab cost (scope of work)) or 70% - 75% of the ARV (As Repaired (as completed) Value).

we can do it not rented but rate will be significantly higher. easier and more cost effective to rent it. unless the bridge money needs to be paid back asap or you need the funds back to buy more, then a cost analysis needs to be done. personally id get it rented at market rent or a touch below if time is a factor. 

My biggest mistakes that have cost me dearly have all been contractor related, so my advice would be to vet your contractors as much as possible. 

Are there any hidden costs or legal issues I need to consider?

Part one is the lowest cost to the REI. 

The biggest challenge is to find one to purchase at a reasonable cost. 

My father is a contractor so we will be able to complete most of the work ourselves while keeping costs low and add equity.

Rates were still extremely low, which made both properties extremely lucrative with cash flow.