I think I have a few projects now!

I believe it's based on trailing indicators, as they look at the change in value over the past year (as far as I can tell) instead of projections into the future.

The total cost of rehab for this project was just under $16,000. major rehab break down:-unfinished attic was broken into 2 large bedrooms - new attic window to meet egress-upgrade electrical -carpet second and third floor-laminate flooring kitchen/bathrooms-created a new bathroom on first floor.

Even I don't try to tackle some of those things (septic, some foundation issues, under-slab plumbing issues, etc).What I would recommend is that you include the cost of the inspections in your analysis/offer, assume that there are no issues with these things, and then re-negotiate if your inspection turns up issues.For example, to address the areas you mentioned:- Septic:  If the property is on septic, budget $500 for an inspection, pumping and cleaning of the system. - Foundation:  If there is absolutely any concern about foundation issues, budget $250 for an engineer to take a look and write a report.- Leaks Below Slab:  These are very uncommon, and would likely not be found by anyone on a casual inspection. 

Considering the length of time that has passed i will assume you already have someone, however I would appreciate the opportunity to give you my contact information for future projects.

I am considering going ahead and getting my real estate license and tackling this later.

Is it difficult to find financing for these types of projects?

We looked at a couple of distressed properties, but they were way too big of projects for me.

@Bruce Bloom Kinda hard to cash flow on preconstruction properties unless you sell your interest (to capitalize on an increase in price) or prefer to have your capital tied long-term (hoping that the developer finishes the project). 

There are some very impressive people/projects that are willing to use IRA money you just need to look and never be shy about requiring/requesting and exhaustive history of how well they've done.As a borrower, my self-directed investors a slightly more expensive than institutional money for construction, but infinitely less headaches.