I have land in my possession and need to know if IRS like kind rules allow me to construct a duplex on the property. 

Does the security deposit only factor in after we win possession and assess the unit's condition?

I have found a property for $295k in a nice neighborhood with an ARV of $385k the seller acquired through adverse possession.

@Khang NguyenAll of the renovations you performed prior to putting your property into service should be capitalized .... it matters not that the property was in-service under the prior owner, you took vacant possession and renovated prior to returning it to service.Additionally, much/most of the work performed during a substantial renovation is considered a capital expenditure, not an expense.

You can take possession immediately if the property is abandoned.

If you're handed the keys to the landlord then you've legally transferred possession.

I once bought a house that was "possessed by demons." 

@Josh Fernandez It's not what you do after the sale... the most important work (other than obtaining possession) is done before the sale.

I think you should first have the property in your possession before you can do that. 

The mortgage guy said we could close before the bank takes possession but I don't know if rehab loans take longer to approve.