Some of the unlicensed guys have very legitimate reasons for not having a license.

Security deposits belong to the TENANT unless a legitimate claim is made under state law.

This should at least give you "some" legal protection when you are working with people.But by and large, I think this is an unfounded fear if you're working with anyone who runs a legitimate business. 

But you are okay to claim any legitimate expenses as long as you follow the law. 

Hello Matthew,As long as your wife has legitimate self-employment income she can establish and contribute to the Solo 401k plan.

Well, I will try and give you a bit more of a legitimate answer than scapegoat.

@Richard Vang there are specific state laws however why would you wait on making legitimate repairs?

So, I am still curious: is the "inspection period" a ruse...or a legitimate due diligence on your part to consummate the deal or walk?

This lender is a legitimate lender, not a hard money lender which you do not want to use except in some special situations. 

Sounds like your legitimate losses may exceed the usual cap ($5000?)