As far as permitting, only septic is required.

They do not require any income verification, DTI, tax returns, etc.

What if no other insurer will provide a new policy, but my lender requires full ongoing coverage, and would treat a naked situation as a default, meaning immediate loan repayment or foreclosure?  

Managing the $60,000 renovation budget required careful oversight to ensure timely completion.

Another CPA can correct me if wrong but I don't think there's going to be any recapture here.27.5 to me implies 1250 property and if acquired after 75' means no additional depreciation to recapture.I think there would be unrecaptured 1250 in the amount of the depreciation taken previously, max 25% at ordinary rates.The total gain less unrecaptured 1250 I believe would be 1231 capital gains, not considering other factors like look back and netting rules.Also the land would be 1231 and would get capital gains treatment.And personally I would subtract selling costs as a capitalized selling cost.Amount RealizedLess: Adjusted BasisRealized Gain/LossLess: Selling ExpensesRecognized Gain 1001I could be wrong though so correct me if so.Article for those interested:Depreciation recapture in the partnership context (thetaxadviser.com)While Sec. 1250 only requires additional depreciation to be recaptured as ordinary income, Sec. 1(h)(1)(E) subjects unrecaptured Sec. 1250 gain to a maximum tax rate of 25%.

Typically 25%+/- down payment is required.

He can't call the wrap due, if the person he sold to has met the requirements of the wrap.The guy who bought on a wrap, did so because he can't otherwise qualify for financing, so a lender won't likely be doing a refinance for him.Does the guy who bought on a sub to and sold on a wrap just walk and let the chips fall where they may?

So if you can find a parcel that doesn't seem to have multiple fatal flaws, or at least you think you can add value to fixing/figuring out their constraints, then I would do that and then just flip on the MLS, especially if you are able to let it "season" a bit, which the title companies in California require anyway...they won't insure a flip of a tax parcel until some time has passed.

Tenants frequently do not take good care of the properties, and the government requires certain standards for the condition of the units.

@Clark HagenI believe the mortgage would deed the house to you and is just seller financing and a contract for deed you don’t get the deedDefinitely want the mortgage and my recommendation would be to use the Fannie Mae templates docs (mortgage and note) which you can get online.