Here's what we do (copied from our website):Screening ApplicantsPoor screening often results in lost rents, legal & court costs and costly damages.Screening of applicants includes the following:Full credit/eviction/criminal checks are done, instead of score-driven reportsVerification of rental history includes validation of actual property owner to avoid fraudVerification of stability of income & employment via YTD paystubs & W-2(s) (analyzed to confirm not fakes)Income is calculated 3 ways to spot stability anomalies: pay period, YTD average and YTD + W-2 average.Debt-to-income analysis (more accurate than traditional 3x rent requirement)Bank statement to see if NSF issues, if deposits support income, prove MoveIn Funds, also analyzed for unusual transactions.Pet screeningHolding Fee required from approved applicants to make sure they are serious, before your property is marked pending.

Everything is always more expensive than it appears at first.

Hey Chris, Just an update for you and anyone else who comes across this thread in the next 9 years: My plan on the loophole on the hazard abatement might have worked but was risky and I don't think would have held up in court.

Even though you are bringing the capital, which is very important, the partner appears to be doing all the work.

But that could also drive out a lot of other little guys which makes for an opportunity.If you are willing to do the really hard work of driving for dollars, going door-to-door, digging through court records (like probate), and looking for deals that technology will not turn up, you could be the winner in the end.

Boiling this down to basics, it appears to me:1.

Inspector states it appears from the outside that the dryer and/or bathrooms may vent into the attic space and not to outside; Vents for this are currently too few and the wrong type. 

I see a lot of investor flip that is crap and this one appears to be high quality, so congrats.

I have enough in the HELOC to purchase and rehab most of the properties I am looking at, so I was wondering if you all could provide some advice for using the HELOC for the BRRRR and ensuring the rehab amount appears on the HUD for ease of refinancing once the rehab is complete.Or, is that something I made up in my head? 

It appears there is an option there.