I also started to realize that there was no equity component to my strategy.

Every time you pay your mortgage, that new balance is reported.However your score can change even with information staying the same as a component of your score is the average age of your accounts.

Financing is just one component of underwriting a deal.

But the best way to get this as high as possible is to at least update something in all the major components of the house

Then look for something that you can buy for lower than the market but rent at or above the market.Also find out what a typical rehab would cost you and break it down by major components (flooring, roof, plumbing, painting, etc). 

They are easily the most critical component of the equation. 

@Eudes De leon I looked their google briefly....it seems 3 resin and 1 comm’l is fine, but....there is a little more to it,  not laid out in straight black and white.It has to be in a predominantly residential use area, the commercial component doesn’t “over power” the residential use/characteristics, etc...as @Chris Mason says, the actual determination is made by the fha appraiser.

Everything else inside the dwelling structure is a structural component that would be depreciated along with the structure itself on a 27.5 year schedule. 

When we partner up on flips we look at it as 3 different components: 1.

What are the basic component of a good insurance policy?