Worst case scenario the health of your customers is effected but if it contamination is discovered the state may look to you to clean it up, which is far from cheap.

Some of the “creative” financing methods I’ve used over my 40+ years as a real estate investor can only be utilized, or are only profitable in certain specific economic climates.  

It is one of the most economically depressed areas of the country.  

I obviously can't argue that, cost-wise, replacement or overlay would be a more economical solution.Basically, I'm not going to attempt to spray and scrape a painted popcorn ceiling, but ya'll are free to partake enthusiastically as the spirit moves you.

Regardless of the health risks involved in untrained people trying to work with lead, asbestos, or mold there are laws in place that carry large fines for violating them.

Does anyone think this type of economic central planning works?

Consider delaying wants if that makes more economic sense.

On the positive side, lower interest rates can lead to increased borrowing and spending, which can stimulate economic growth.

After a 3rd party inspection he found out that his house had never been rehabbed to turnkey quality at all and also never actually had a tenant in it, but was basically economically and physically obsolete in terrible condition and a terrible location.

Hi Karin,The above you mentioned used to be the case with FHA flips that were probably ear marked to be sold to Wells Fargo as one of their secondary market conditions was two appraisals if the sales price was 20% or higher than the acquisition cost when documenting the 24 month chain of title.I understand your frustration, they (Wells) just want to make sure that banks on the origination front do their proper due dilligence with valuation and documentation of the value to ensure that they will not have to buy back that paper from the correspondent lender (unless your dealing directly with Wells Fargo).Its hard unless you ask but if you find a banker who is originating loans and directly selling/servicing their government loans to Ginnie Mae(GNMA) then they may not require you to have the two appraisal and additional procedures because its not necessarily a GNMA requirement but rather banks on the front lines trying to reduce their risk and requiring these additional steps from you to protect their behinds.Generally you may find that on Flips they may need the appraiser to go out and certify that the property also passes FHA's health and safety standards as well so dont be surprised (double strapped water heater, CO detectors, etc).In the past I've had to show excel break downs of work done, invoices, bill of sale's, and others too but that was back when New American Funding sold the paper to WF (not any longer =).