So correct me if I am wrong, the reason being that you cannot reconcile bank accounts, credit cards, cannot epay or print checks, track loans, fixed assets, view a Balance Sheet and more.Saying that in QuickBooks you can create automated invoices.

As the seller I would pay for the energy audit, do the analysis on the work to be done (cost vs savings) and then market the home with a prepackaged improvement contract that would meet lender guidelines (solar, EE windows, etc). 45 day close to allow for enough time to do loan and obtain permits, occupancy COE+2. 

Deegan and @Arda Bircan There are technically 7 Tests for Material Participation (but 3 that are most common) -> the individual 500 hour mark, that the activity of the individual is substantially all, and that the individual participates more than 100 hours + no-one else spends more time than them.Litmus Test: Are your hours integral to the operationsThe hours that qualify must be substantially all hours and have a legitimate impact on the rental activities.Activities that generally count: showing the property for rent, taking tenant applications & screening tenants, preparing & negotiating leases, cleaning & preparing the units for rent, repairs, and improvements, managing the construction, purchasing supplies & materials, inspecting the property, responding to tenant complaints & inquiries, collecting & depositing rents, evicting tenants, writing & placing advertisements, and working on your websiteActivities that don't count: education & research, investor-type activities, and travel time..

What's up Jay,Given your situation, here are a few strategies you could consider to secure the rehab budget while respecting the seller's desire to maintain a first-position lien:Home Equity Loan or HELOC:If you own your primary residence or another property, consider tapping into its equity through a Home Equity Loan or Home Equity Line of Credit (HELOC).

An assumable mortgage is effectively a 'portable' loan.

(we are past inspection & appraisal - just waiting on loan to close)- There wont be any photos of updated carpet, kitchen cabinets and countertops- I can't show the property in person considering I dont have the keys to proeprty yet- Would be gathering leads for people of who are intersted in hopes of getting it rented out faster If I post the property now, I could probably have a tenant lined up to move in August 1st.

Im guessing this option does better with cash at hand than getting a loan.

You have to be an expert at dialogues and the risks of subto are not widely known or are said to never happen (loans being recalled), but that's not what I would bet on.

Below are two charts that show the amount of unsold "improved" properties.

It's your opportunity to improve your lease agreement and to enforce lease terms that you want enforce and that may not have been in the prior lease.