What about liability if they get snowed in and frost bite because something doesn't work on the cabin.

You just can't take title until after your sale.Regarding the number of replacements there is no limit on how many you purchase. 

Which in Vegas with 12 homes is usually limited to 1-2 water heaters.

We may need to get creative.We’re going to need a good realtor :)Anyway, we have so many questions, too many for one post, so I’ll limit myself to two.

So in essence for the price range of the homes I have been looking at i am not able to purchase 415k worth of homes while being limited to mortgaging only 4 homes which has left me with the following scenarios:1) I use all profit and mortgage some properties for a total of about 350k worth of properties.

Typically the less cash you have in the deal the higher IRR but that also is not always the smartest business model as if you over leverage and their is a market correction or if your cash flow is reduced you are very limited with your options

So some agents actually will have one of their agent friends represent them to reduce their liability.

Refinance at the start of Year 2; $185k ARV * .7 = $129,500 - $50k balloon = $79,500 + $12,744 [cash flow from rent with new mortgage] = $92,244 cash flow Year 2Sell in Year 5; less the balance due on the amortization schedule $121,909 = $63,091 cash flow Year 5The present value is now $135k which means that if I put in $140k at the start ($80k purchase price + $60k rehab costs) I overpaid by $5k.I realize there are a lot of limitations to this, for starters I didn't increase the rent at all and I assumed no appreciation beyond the ARV.

Only you know these facts.One item if you file an amended 2014 you are putting the government potentially at a disadvantage since the normal 3 yr statute of limitations could be expiring soon.

Because it is paid off the property is deep into negative cash flow from the property turning your asset into a liability.