Should contractors and painters know what they are doing? 

@James KieferRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

I have applied, scheduled to have the lead investigation for hazards soon. 

Depreciation recapture upon sale would apply to the portion of the property you depreciated.

These same principles should be applied to anywhere you choose to invest.

I just tell them, they can apply but it is probably not worth their time and money because I wont be able to hold the property vacant for that long.

In Michigan, and much of this probably also logically applies to Ohio, a DEPOSIT must be returned. 

Where would this credit be applied to ?

I’ve heard from others it is still a ough thing to get lending on.The suggested way that bankers have given me is to have the end buyer apply for the loan and we build the house for them.

He said he's been through the wringer trying to apply for units.