The second best solution seems to be ensuring that the proper compatible components are installed (receptacles, switches, etc). 

When the home was subsequently heated & ready to inspect the appliances were run again & water leaked everywhere & each appliance required new components. 

The key component is that the trust is created by the seller, and you notify the bank that the trust is for estate planning purposes, with you as the trustee. 

@Heather Yan, the ideas that Account Closed proposes regarding positioning your real estate so that you get the maximum rent out of the lowest property value can be a key component of a successful 1031 exchange.  

Build cash in the fastest way you know how and use it to buy apartments or commercial properties that have a "value add" component. 

I'd rather walk away from a deal than be plagued by it and worse to lose my shorts on it.You just can't determine how much damage has been done i.e, drywall, paneling, plaster, insulation, structural components i.e. framing exterior siding and even fixtures and appliances, etc. until you've done a thorough inspection. 

Beta is a measure of volatility and one component of risk.  

@Mike Dymski @Eric Bilderback  One other thing to note,  Just be mindful that the LTV is just one component that can limit proceeds on a loan.  

If, as you suggested, the rehabber agreed to a lease/option to get past the timeframe often called for by a bank when a property is sold within a short timespan for considerably more than purchased for, that would mean that, while the rehabber would get rent for a few months (the lease component) along with an option fee, they'd also be potentially turning away other purchasers and paying holding costs in the meantime.

still hold these for incomeI am not going to argue with the bank and their valuation, if they value it at $200,000 there must be evidence of sales, as they are looking at recent sales comps including sq ft, land component etc.I am a simple person, I target markets that are rising, and look at value.