For the FL properties, I have read that for a second property there would need to be 20% down payment. 

My thinking is this leaves me with two paths: A) Best case is I pick up the foreclosure for $1M, immediately list it for sale at $1.6M or more and hopefully sell for a > $500K pretax profit. 

Welcome to TN, the water is warm. 

I decided to take the leap and sign up for the program.

The terms on the debt look good.

The rent is calculated from the zillow estimates.

At the current pace of  construction and costs, development is not keeping up with demand. 

You’re in the trenches, you read this forum, you network, you ought to know. 

It won't impact the rental side but will cause issues on the rehab progress and permit nonsense instructed by the city. 

You can’t deduct the full cost in the year you make the improvement, but you would depreciate it over the useful life of the improvement (usually over a period specific to the type of asset, like 5, 7, or 15 years, or over 27.5 years for residential property improvements).