I brought to his attention that he will certainly need to get approvals and permits to be allowed to even place the home on the lot. 

This brought a lot questions up for me when it comes to being in business as a real estate investor.

A poster above was right, this needs to be brought to the broker’s attention as that Realtor is 1) Not allowed to do that 2) Does not care or 3) Is outside of her realm.  

I called the lawyers office that I closed with in 2016 and I asked how come that issue was never brought up to me and the lady was sounding like something really bad just happened.

Luckily at the time my interest on the loan was rising I was able to refinance and get a fixed 30 year loan that brought my interest rate down which brought my payment down. to where I could afford it.I hope this answers your question.

The concerns you brought up were my concerns as well.

Also, the first few clients we had were so thrilled about the good service they were getting at a lower price that they've given us rave reviews and brought us other clients by word of mouth.All that to say I would start a little lower than what you think the market will bear to start off with some super stoked clients who will help you do all the advertising for you in the future :) Best of luck!

They brought a letter saying the security deposit was made (which wasn't disclosed to us). 

The other option is as @Diana Muresan brought up using the 203k loan if there's significant rehab needed.  

@Lee CastroYou could have $0 in a flip if you had a partner who brought all the money.