Several law firms have 'standard' forms where you can fill in dates, amounts, and any specific criteria. 

The bank underwriter just needs to be able to justify such a huge increase in the purchase/sale price.

I will call a couple of other PM's just to compare but seems pretty standard across the sector.

It is to encourage investors who have the cash to flip and increase the value of these neighborhoods.

This actually increases your risk, not decreases it.

Only the most desperate renters would probably agree to live there so the price of the property would have to be dirt cheap and cost you as little money as possible in the rehab to make it worth the effort.Your gambling that the surrounding area will be gentrified in the next few years and increase the property values.If this was in Southern California I would say yes absolutely but,the ATL may be a little harder to wait for unless the population booms there in the next 5 years.

I much prefer tenants I've placed and rehabs I've done to ensure they're up to my quality standards and you don't suddenly have 11 out of 50 roofs go bad in a year wiping out an entire year of net income.  

My long term real estate goal is to purchase rental properties that cash flow and create passive income that I can use to roll back into my investments and increase my portfolio. 

It seems to me like an easy 3% ish percent equity gain or a way to reduce the loan a little and increase cash flow a bit for almost nothing, that's my thought any way.  

Not necessarily as good as it sounds due to having to meet the standard deduction, which is around $12k or $13k for families, I believe, before any real savings kick in.