Question: does anyone know if there are Fannie/Freddie, FHA or VA rules that require a forced air system to be ducted to all parts of the house?

They could learn that FHA will finance up to 4 units, get all their income documentation in place, get their credit score improved to the proper level, get the seller to do the required repairs, get funds properly gifted for their down payment, contest a bad appraisal and get it revised, and think their good to go......then they find out that while FHA finances up to 4 units, they have to be owner occupied, and the buyer can't do that so the deal is dead and all the work was for nothing.

Newer furnace, new central air, roof in good condition.  

I am researching flipping market and i can divide it on 3 segments:1. rehab - when someone gets ugly or under condition house, puts a small money to get condition shortly and sale it as soon as possible - a small profit, high dependence on purchase price. in this case we earn on buying.2. improvement - getting old or cheap house, puts more money to get more expensive house which we can sale for high price and get more profit. in this case we earn on buying and improvement to get highest price among around houses in that location3. re-building or building new one - when we destroy old and build new house. in this case we earn more profit when get something absolutely new with highest price.

I pick up the benefit of improving the property, the year-end tax write-off, and the tenants feel they're appreciated that I listened to their needs and addressed them. 

The property is in average quality due to some recent capex improvements. 

I believe this year there was a law passed that allowed businesses to write off 100% of their capital improvements instead of depreciating them over time.Again, you would need to check with your cpa and see if that applies to you.

If you sit through enough of the CIREIA meetings that are only available to paying members of your club, you'll start to get a good feel for who is knowledgable and experienced vs. who is full of hot air and pipe dreams.  

Reserves ~ CapEx are fund held for repairs and improvements. 

I also happen to know that the property needs some excavation work done to improve the driveway, which I estimate will run $10,000.