Well, that’s at least what they tell me about it, because again…I’ve never set foot inside of the home.The key to flipping houses you’ve never seen is all about surrounding yourself with a good team.

Yea, this is pretty normal but not at all legal or ethical in any way.  

I have 25 and would have trouble with normal home lenders that sell to FMay or FMac.  

So if I replace a bathtub and I can support the fact that the bathtub only makes up 10% of the plumbing system as a whole, I can fully deduct the cost in the current year, rather than capitalizing and depreciating as you normally would because the 10% is not a material improvement to the plumbing system as a whole. 

And Rehab Costs would be the cost to tear down and construct the new property, including all hard and soft costs that aren't factored into the Fixed Costs.For example, if I have a house that I can tear down and rebuild a 2000 sf property that would sell for $400K; it would cost $100/sf to tear down and rebuild; I'd have $50K in Fixed Costs; and I'd want a 20% profit on the resale price ($80K), my max purchase price for the tear down would be:MPP = $400K - $50K - $80K - $200K = $70KKeep in mind that the rehab costs must account for all of the following:- Site Planning- Zoning Approvals- Utility Installation- Permits/Impact Fees- Environmental Studies- Etc...If these costs aren't factored into the per-square-foot construction costs, you need to factor them in separately. 

my first multi family, non-owner-occupied (a 4-plex) needed 25% down and normal conventional loan qualifications (purchased November 2014). 

We just got word from our lender that the underwriters have denied the appraisal due to functional utility being "Fair" instead of normal, "No good usable comps-distance of 3 miles or greater are not acceptable.  

now that the honey moon period is over  IE post GFC  08 to 2011 melt down and RE has start to balance out.. back to what was in my day a normal market  IE deals had to be gotten not just plucked off the treeswhat are you doing to adjust to the new times...

For tax deeds the owner can still normally redeem the property for a certain period of time and it can be tough to finance them for a year at least where I am looking. 

Normal painting, carpeting, just redid the backyard put down new sod.