Additionally, you should examine the past two months of bank statements / investment accounts to ensure applicants can afford rent even if they lose their job.

Additionally, what factors typically increase bankruptcy risk for leveraged investments?

Then you may be able to split the lot and do a construction loan for a new build on that additional lot...

In addition to being part of a few syndication deals in the Houston and dallas area, ill just speak anecdotally: Its very hit or miss and really depends who you get to review the case.

Once you know the reason(s), for the flooding, then you'll be able to figure out a solution.I'd also strongly suggest that you don't re-finish the basement until you've determined the cause of the flooding and fixed the problem (last thing you want is to re-finish the basement, and have it all ruined again by another flood).I'd suggest first watching some videos on youtube on flooding, drainage, groundwater, french drains, sump systems, water catchment systems, etc, just to give you a better understanding on what can cause flooding, and what types of fixes might work. 

When evaluating such deals, when does it make sense to purchase a property that can be fixed and refinanced to maintain ownership, while also allowing for the construction of a duplex on the additional lot, thus maximizing the return on investment for both the lot and the property?

It has been suggested to call these people 1hr prior to the showing time to verify they still plan to come.

Please note -- although this is separate from property management, IF your PM handles this for you in addition to traditional property management, is the fee you would pay them for this different than if it were a completely independent construction manager/overseer not already associated with the apartment complex?

Therefore, if you choose to sell the subsequent property later on, you will ultimately be responsible for paying the taxes.I would retain ownership of the property, continuing to generate rental income, while leveraging a second position loan to acquire additional investment properties.

This model also suggests we have nothing left in reserves, which in never a good idea when you are starting out.