opened up the floorplan added french doors to access yard from multiple areas.

Here are the rules for a "Secondary Property" per Fannie MaeSecond Home PropertiesThe table below provides the requirements for second home properties. 1      ✓Second Home Requirementsmust be occupied by the borrower for some portion of the yearis restricted to one-unit dwellingsmust be suitable for year-round occupancythe borrower must have exclusive control over the propertymust not be rental property or a timeshare arrangement1cannot be subject to any agreements that give a management firm control over the occupancy of the propertyIf the lender identifies rental income from the property, the loan is eligible for delivery as a second home as long as the income is not used for qualifying purposes, and all other requirements for second homes are met (including the occupancy requirement above). 

Investors too.I too am guilty of alot of the above but you have to to get any crumbs off the table.

I recognize the value of a hard money lender but I have also seen over the years how the rates have generally gotten out of hand- on a past deal I had under contract but walked away from the hard money as it was offered to me at 15% and another 4pts for closing and me still coming to the table with 20% due to claims that having done a half dozen personal flips, my partner being a GC for 40 years, and doing 100s of renos... we didn't have enough experience for the lower rates.

Don't forget about the pool and completely fenced in backyard and the RV garage tucked off to the side of this amazing home that has an added room set up as a games room with a poker table, arcade game etc!

Attached to the RV garage is a games room complete with poker table and an arcade game!

After this was done we put down 14mm plastic under the house as a moisture barrier.We dug a French drain around the front of the house back to the creek to help with any moisture issues under the house.While we were under the house we also replaced all the plumbing with brand new pipes.Both bathrooms have been completely renovated with the master getting a full custom tile shower and the other bathroom getting a soaker tub with custom tile surround.

It seems fishy to me that someone would leave that much money on the table.

Also, capital gains is not calculated on what you receive at the closing table, but what your sale price is less the book value on your schedule E (?). 

Outside of that, I would add internal french drain if it isn't there already.