So I must assume it's just not about the money/profit, it's also about the effort/hassle and my thinking was(flawed or not) that a B or C property that  cash flowed would be easier to manage than a D property. 

Maybe your rental process is flawed, if your tenants are moving on after just 12 months? 

I have no experience on ever using this technique but I was wondering has anyone tried this or are there any flaws in this logic?

But they could uncover some major issue such as a hidden defect or such thing)In summary, make your decision on the numbers not your opinion.  

The RMLO cannot assume your responsibilities as a seller.Most of the time, the strategies people are following to lend using an RMLO are flawed thus removing the protections you think you have.

I have been down the road of making an illegal basement into a legal one and it was expensive and didn't seem worth it but if this building is supposed to be four and somewhere documents were wrong then I would like to uncover that.  

With this flip underway, though, I'm really hoping an accountant with experience working with investors can help me uncover some new tax savings.Beyond just filing my taxes - and more importantly in the end - I'd like to find an accountant I can confidently work with on all my future investments.

You'll be tearing down all drywall on walls and ceilings shared by the units.On top of these known things, there's all the things you'll uncover on an old house when you open it up.

It's all brick and has been painted white, so it shows all of it's flaws. 

It will likely never be an issue for you.Multiply the scenarios out to a 100 unit apartment complex - and, more often than not, something that the seller said is not correct, and tenant estoppel's help to uncover problems before the seller is gone and out of the equation.