@shaun Reilly is probably correct for trends in your state.When I make a loan I have them sign off verifying that the loan is for the purpose of fix and flip and under no circumstances will it be OO.

I will use some of my money for carrying cost, not in this circumstance, but in one where the deal makes sense. 

Circumstances change and earning power can change too.Also, consider their critical thinking skills and personality.

Some section 8 people are good, but circumstances mean they cannot support themselves entirely.

Each lenders criteria is different, based an individual circumstances and abilities.  

Basically it is case by case - circumstance by circumstance.Once you find the next of kin - you need to make sure that you ask all of the right questions.

I told her and her daughter that they could pay me $800 for one month rent and $800 security deposit and they have to let my workers in for the rehab at any reasonable hour and they said they would think about it (no rental agreement signed, but still foolish on my part b/c rent starts @ $1200 in that neighborhood).Because of recent personal circumstances in my own personal life, I changed my mind and decided I should stay (live) in the house and do the entire rehab on my own and contract out only when necessary.

They did a presentation at a local REI meeting recently and talked about this particular circumstance.  

To your first point, I'm highly focused on reducing the tax burden in early retirement: If my circumstances allowed for it, I would to move to a lower COL area/state without income tax and do some tax-gain harvesting. 

Assuming this drops a little due to unforeseen circumstances, and also assuming we do not walk away dues to home inspection or building code contingencies, we should still have a solid RoI.Thanks to everyone who chimed in.