I would read the below article to help you understand per IRS rule RE professional but again speak to your CPA and or attorney for guidance.https://www.thetaxadviser.com/issues/2017/mar/navigating-real-estate-professional-rules.htSo you invest $100k, and let's just say for argument sake it is a 6% cash on cash return so you will make $6k in Year 1 and go up from there.

Have a look at BP's blog where new articles are published every day: https://www.biggerpockets.com/blog 4.

I did find quite a few articles stating that certifications don’t seem to matter.

Permits are legally required (in most jurisdictions), but it is certainly physically possible to restore the home completely without any permit. 

I got mine through State Farm since I already had car/life/personal article policies through them.

We just don't quite know how to approach it and to determine what would be a fair price (one example was his price was about 62K for the architectural plans, permits, labor, materials, demo)I was trying to find other articles online about these kinds of ventures, but didn't turn up anything; so I figured some of you fine folks might have some insight into this.

There was an article in the local paper yesterday that it’s the 4th hottest market.

I live on a large 4.38 acre lot in an up and coming area in SC and my lot is off a major road in the city (property is not part of the city but is physically located inside city limits). 

At times, the articles make it sound like you can just turn around and pull money out.  

I read an article on how Fannie Mae updated their stance (https://themortgagereports.com/22394/new-lending-rule-for-second-home-vacation-property) and now allows this type of arrangement on Second Home loans.