And if I then needed to sell it, or I died a year later, how would the basis be determined?

Based on what we find (Let’s say $40,000 Rehab estimate- including a 20% cushion) I’ll determine my offer this way:  $250,000 ARV x 70% = $175,000 My All-in Costs basis

The scheduling is so convenient you can literally pick the days that work best for you.

Knowing this would let me determine what type of return I could get on that cash.

Vickie,Here is a blog that wrote on deductions from security deposits, but always a good idea to read over your States landlord tenant laws;Security Deposits VS Normal Wear and TearThis is probably one of the hardest things to determine and explain.

One thing that I think trips people up is "purpose of loan" also determines LTV limit, not just occupancy.

I've heard there may be loan products that will look at the value of the home after construction in determining how much cash can be taken out but I haven't done enough research yet to know if that's accurate. 

FHA will not insure a Mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining Investment Properties, even if the Property to be insured will be the only one owned using FHA mortgage insurance.”What are the exceptions for the “single property” rule?

Picking it up and buying a house for 50% of what the person on the other end paid for it just 5 years ago, that takes skill.

As others have said, this provision is even broader because it also makes the Owner responsible for injuries to the PM's employees.You should have an experienced attorney review in conjunction with your insurance policy to determine the real scope of additional risk you are taking, and what portion, if any, might be uninsured.