I would be very cautious about hiring contractors that don't have verified licenses, proper insurance coverage, bonds, and are in good standing with the state and all insurance / bonding companies.

If you have a properly priced property you should be able to find tenants in 30 days or less.It is time for a price reduction.

Since you have the liberty to decide on the layout, consider the best placement for the appliances first and what they need for proper ducting, power, water and gas (if applicable).

If there are water issues that's potentially a big expense to fix--possibly you'll need to rip up the entire basement apartment and start again for it to be properly drained. 

Knowing who negotiates in good faith and who is an a**hole,  knowing who can close and who wont (This extends to accepting offers with financing from certain lenders) all lends weight and credibility to the offer, or detracts from the offer.

I don't believe the average Title III or small time investor can afford to properly diversify with automated underwriting. 

If you buy right and do a proper analysis then you can mitigate your risks significantly.

All investors leave 10% in their rehab budget for fudge factor to account for unbudgeted projects.I know several BP people that used credit cards to fund the rehab part of their investment so they were able to pay that back in a short time, but to fund the entire project on credit cards for flips is risky on top of flipping (which itself is a risky undertaking to ensure you plan properly to ensure you profit on the sale).

I want to identify a proper for a 1041 exchange that I just completed.

You could also just remove the carpet and pad and screw it down (you'll probably need weight to get the floor to settle tight as you screw).