I have taken time while on quarantine to learn as much information as I can about the proper steps a beginner should take to begin real estate investing.

Similarly, we learned that just because a contractor has a higher price and a big business does not mean they will be professional or reliable in unexpected situations such as our local permitting process and sending in the proper forms to pass inspections.Only higher contractors that are references from trusted sources.

Having the money lined up doesn't help without a deal to do that is properly underwritten. 

I just wanted to get some clarity on proper protocol.  

Has anyone bought a non-conforming and successfully renovated it with proper permitting?

He missed that some electrical outlets were malfunctioning, the plumbing in the shower was not working properly, the power box was old and outdated, the AC was not working, etc. - Don't be afraid to make sure everything works well and if it doesn't, don't be afraid to ask them to fix it or ask the seller for a credit.

I don't know how a bank will react if the answer is they are going to re-lend it to their inexperienced nephew just out of college who just moved into town to invest in real estate with no experience. 

I'm not asserting this is the proper way, but it's the procedure we've been using with our commercial tenants. 

You could have it framed and let him lay the floor boards-assuming he is skilled and will do it properly.

Get the best rate you can, but it’s far more important that you keep it separate, include all the necessary 8-203 info in your lease, and properly account for it at the end of the tenancy.The DHCD calculator (it that’s what you’re looking at) is great for deposits received after 1/1/2015-and a landlord is permitted to rely upon it per the MD RP Article.