That way you're not holding on to their money, but can still pay the contractor when the work is completed.A third way which I've heard of, but must be very rare, is to hold on to the rent until the end of the month and then deduct any expenses that occur during the month and send the balance to the owner.

Most inspectors won't do an inspection without a 3rd party to protect them from the liability questions above.Also note that most standards say that home inspections are non-invasive so we aren't moving furniture, or tearing off dry-wall.  

a proper builders risk policy is written to cover RCV or ACV if ACV is greater when construction is complete you need a standard dwelling policy.

The plan is to purchase the properties with private or hard money, rehab and refinance out of the initial loan using standard 30 year fixed mortgages.

The numbers are pretty great - ARV will be about 210-215, with standard rehabbing being about 50, and I will be able to purchase for around 90.  

The insurance company deducted nearly 6K off the payout for depreciation?  

Office hours are until 6PM Pacific Standard Time.

At that point, you could deduct overhead expenses and other misc business expenses as you are already in business in the geographic location. 

Make sure you note any "Phone Answering Fees, Repair Oversight Fees, After Hour Fees, Other Arbitrary Fees" it's pretty standard practice everywhere for what I've found to be 'sub-par' property manager. 

The requirements here are very minimal, much lower than our own standard.