As a Buyer I’ve been the beneficiary of low appraisals on bank sales where they have the original square footage listed in the appraisal because, as she mentioned, they almost always go by public records. 

For example, if I can borrow money at 5% and buy property at an 8% cap rate, then I am making money on the bank's money. 

My client would love to work with me, but she has a Reverse Mortgage on the property and is afraid once she leave her Bank will want the loan in full.

People lose it all, run on the banks and start eating one another. 

Basically a HML is another way to obtain a loan, just like how you finance your properties with a bank / mortgage broker.Most of them will finance repairs and acquisition.

I'm trying to find out more about a foreclosed property where the owner listed is "U S BANK TRUST N A TRUSTEE."

You say the market’s hot, what about considering:1 taking the bank’s option to Convert to a 30 year fixed term, with maybe piti of $500/ monthly (See if they will lend you 75% of the appraised value OR use the purchase price Plus a detailed list of your costs and repairs) , and then2 selling on contract or lease option at full market price+, ie $119,000 possibly on terms.Look for 10% or more down and finance them as long as your loan is for.This would recoup your initial investment, $12,000+ and costs plus profits And give you passive income of what $200-250+ net monthly?

Im in a position were i can live rent free for a while, could bank around $30k this time next year.

3) Can I deduct real estate investing expenses/trips considering I do not have business bank accounts, have no legal entities setup, and I have a tech office job (I spend the majority of my week on my tech office job)?

I did some investigating here at a local bank and I do not have enough equity in my rental home yet to be able to use it as collateral.