Some of the ones that were not redeemed were like a former dry cleaners shop that had a caved in roof and lots of mold. 

Lenders like this because you are putting skin in the game.

They can, however, tax the buyer at X, Y, or Z rate and this is likely what you are thinking of.As to how this YouTuber can do this . . . it's pretty cut and dry  In this video there's something like $300,000-$500,0000 "given away", sold, or donated. 

Catastrophe to me is money dries up and values drop like a rock.

Having the money for the reno will hopefully offer enough "skin in the game" for approval.

That's just economics, it's either that, or a bunch of people lose their jobs working in real-estate, a bunch of old-folk lose their retirement funds and become welfare cases through no fault of their own, and rentals dry up, properties fall apart due to lack of maintenance, and you end up with nowhere left to rent eventually.

HiHas anyone heard or worked with Whitestone Developments in Cape Coral, FLThey are marketing build to rent SFH on Dry lot or Fresh water canal.

.-6 Rented Spots Rented for a total of $2000-1 spot is scheduled to have a new home placed ‘soon as it’s dry enough’ $350/mo-1 spot is the owners mother, free rent, will be moving her ‘at some point’ but “if she decides to stay then she will have to figure her own deal out with the new owner” per the owner

The rate was significantly better than what we could get on any Fannie/Freddie product when we locked in her rate -- about a month ago before the FHFA made these changes.Of course other times the demand dries up and pricing for non-agency loans get much worse/hard to come by.

TL;DR: I want to buy a fixer-upper with an FHA/VA loan for 0%-3.5% down, force appreciation through renovations, then sell after a year and use the profit as the 20% downpayment on a conventional loan then BRRRR.