@Issac San Miguel - yes they did, however; the actual costs are just so much more than expected.....I am still looking at ways to reduce cost and a prior post suggested looking at this as a rental vs a resale.  

If so, you need to plan your exit from the SBA loan prior to leasing it as a real estate investment.

I would have all that done prior to the appraiser arriving so they are not waiting around for you to get in.   

To me it amounts to a high risk loan, and the vast majority of the risks occurs during that repositioning period prior to the refi. 

I have about $200,000 to invest and I will invest $100,000 with financing prior to quitting my job in 6 months and keep the other $100,000 in more liquid investments so I can jump on the next cycle of foreclosures/housing market corrections.

The issue is you don't have any expenses.Any cost you have to fix up a property prior to putting into service is NOT an expense by IRS rules.

Tax withholdings were well over 110% of the prior year tax liability; so, I am comfortable that the penalties will go away. 

I had the inspections done very shortly after, and after getting the list of repairs, I decided that prior to going forward with this one, I wanted to make sure it was the one I wanted.

That's something I was always told needs to complete prior to funds transfer and other deals we've done it was always prior to funding.

Prior to your closing make sure to ask your title agent what you need to bring on the day of closing and what needs to be completed prior to closing.