Also, here is a thread you may want to follow as it will be a good visual step-by-step lesson. https://www.biggerpockets.com/forums/48/topics/259...

Regulators don't like special treatment, banking is about serving the public and community not special pockets of a local economy.I suggest you set your business plan along conventional lines of thought in compliance with the norm, not exceptions to the norm.

90% of the time you can see the plumbing issues with visual inspection.

Personally, I do worry about shingle color, because depending on the roof pitch and size relative to the rest of the house, it will have 30% to 60% of the visual impact when you first look at it.I have replaced shingles more than once just because I couldn't make the existing color style work with the rest of the house.They look like a dimensional/architectural shingle from the picture (not a cheap 3 tab still used in our area).

The owner's long term capital gains tax treatment was denied and the sale was deemed to be sale of dealer realty (a flip) even though the holding period was more than ten years.

Spend several days visualizing the entire process and writing out a complete list of tasks.

There are some fractional owner products that are designed to help you in situations like this like Delaware Statutory Trusts and TIC products sold by broker/dealers and syndicators that qualify for 1031 treatment and can help to ease some of these timing issues but you'll still want to make sure you have good guidance and keep an eye on your timing.

Qualified Use means that your relinquished property or properties and your replacement property or properties must be held for rental, investment or business use in order to qualify for 1031 Exchange treatment. 

You get very favorable treatment as far as loan terms (compared to a typical investment loan), you'll probably really cut down your living expenses (so you can save for the next downpayment) and you'll get hands-on experience.

Properties that are acquired and held with the intent to rehab/fix-up and then sell/flip are considered inventory in a trade or business and do not qualify for 1031 Exchange treatment (nor capital gain taxes).