Failing to claim expenses can lead to mortgage fraud or even major tax issues if you get certain refundable credits.Not worth my time to comment further.

The cheap properties out of state probably won't be worth much more than you pay for them today in 10 years.

If you'd like to send me the details of the property I'd love to look it over and tell you if it would be a good deal and worth your time or not. 

I believe wholesaling is typically a North American phenomenon.

Ignore the fact you are friends and get an attorney to write up the agreement if it is a deal worth considering

There's easily another $10k worth of work needed on the outside without me even going inside the home. 

We've decided that it's just not worth it to dig the basement down due to opportunity cost, the legal hoops we have to jump through, and the logistical headaches you all have pointed out.

Is it worth it, you didn't give enough information to make that determination.

But, there won't be a bidding war and any fix-up you do will make the property worth more than what the improvements cost you (I hope.) 

I know this is not your "typical" reason to refinance, however, I am wondering what you all think about using that equity on a home purchase as buying a home right now is extremely important to us not only for just having a home, but also prices will not come down for quite some time with our housing shortage.