But I'm a fast learner and I minimize risk by being anal about things that need to be in place before I move.

Every investor has their own list of criteria and idea of acceptable amount of risk per return.

@Ray Gayk, it all comes down to what areas you are comfortable with from a risk/reward stand point. 

I think your first issue is your 25k scope of work may not have been close to reality.but it still looks like you have enough room to at least break even.there are many flippers ( myself included) that sometimes break even is a great win.flipping is fraught with risk.

Some of the smaller NC towns are losing population and/or are reliant on one employer - too much risk for me despite attractive prices.

Then you could provide the rehab costs and then move in and refi it in your name afterwards, of course compensating the investor for the time and risk.

If you go this route and get audited - you risk an agent questioning your deductions.

Just mitigating my risk as I'm already in the hole.

Check first with your local building department.High liability risk.

Is it higher risk and is there any reason I wouldn't want to do this?