I don't know a lot about reverse mortgages but from what i understand once her mother passed, she had a period of time to make arrangements but she applied for extensions which i assume got approved.

The dissent agreed with the majority that the sale must include a permanent dwelling and that a principal-residence sale must include a home and improvements, but argued that the dwelling could be demolished and rebuilt as the petitioners had done, where even though the original house was gone, this would be defined as renovation of the original principal residence, not as a different residence, and not interrupt the 5-year period. 

A normal purchase will allow you an option period to have a full inspection which includes looking behind the electrical panel , under the home, in the attic etc. from there if your inspector sees something of concern they will include that on your report and from there you can get second opinions from a plumber, electrician etc. this is always my biggest concern for first time investors who buy from wholesalers - no inspection, all cash, many times inaccurate repair and ARV figures and no one in your corner.

Unlike stocks or something you can flip in the two-year range, real estate syndications typically have a hold period for five or more years.

The dissent agreed with the majority that the sale must include a permanent dwelling and that a principal-residence sale must include a home and improvements, but argued that the dwelling could be demolished and rebuilt as the petitioners had done, where even though the original house was gone, this would be defined as renovation of the original principal residence, not as a different residence, and not interrupt the 5-year period.

.$1100 per year x 10 years holding period = $11,000*New Appliances: $2,500*New Water heater: $700*New A/C unit;     $3,500*New Furnace:     $2,500*Repaint interior: $2,500*New Carpet:        

Mine was prime plus one percent for a regular loan and amortizated over a longer period for a homePurchase.

What would be the holding period in this case?

Capex is wildly variable, but I'd go with at least 3.5%, playing off the 27.5-year depreciation rate for residential properties...but that's only AFTER the initial period, over a very, very long period, if you are tightly controlling costs. 10% is more reasonable, and some years, especially early on with delayed maintenance, it'll probably be 100%+. 

Offers are generally negotiated sight unseen with a due diligence period written into the contract.