@Matthew WardYou are correct - Florida does not have an income tax on individuals.If you operate out of state - a portion of your income may be sourced to a different state.You may be required to file a non-resident state return in that state.The Federal tax return reports income that you earned from worldwide sources.

I know its not the "legally correct " answer but if its junk I might just get a dumpster.

If not, bid your scope of work to at least 3 contractors. 3.

If they don't contest it you should be fine.Make sure that if they tool this to court that the fine for not being 100% Correct is just what you withheld and nothing crazy.Consult an attorney if your not sure.

Is everything I have done/are going to do correct?

On my other home I would like to start the house should be permitted and looking for licensed contractors that can give a fair bid and look for long term work.  

Walk through the property and tell them exactly what you want done and get bids for the work.

Do I need to get the hard money loan first or i bid at a foreclosure auction first?

Has anybody had a similar experience or can corroborate if my understanding is correct? 

Within the last 8 weeks I have completely stepped outside of my comfort zone... asking for and negotiating seller financing, bidding at forclosure/tax auction, working on inheriting a section 8 tenant which means dealing with the housing authority, etc. and the worst that can come of any of it is that I learn something.If you don't change anything... than nothing changes!!!