Yes they require a deposit.

Everything required on a 203k is how every construction project should be handled.

@Eric Le Yes that would be a solid investment, I like that FHA and 203k loans only require 3.5% down.

This is all before title, tax, conveyance fee's, water hold, etc.

I cannot tell you after buying a property how many things come out of the woodwork like roof repairs, electrical repairs, new hot water heater etc. 

@Michael CaiThere are a few good markets in Georgia, but there is one that is blowing them all out of the water right now! 

Am I required to issue a 1099 to my friend for his labor?

Our lender required the same thing as what you are saying so what we had to do was have my business partner sign a lease for us that stated when he would move in and how much he would pay in rent.

Most lenders will require 3-6 months title seasoning on a cash out refi with a DSCR loan.

(Yes plenty of my acquisitions are "wrecks" as you call it, and require significant expense to be made great...).