@Theresa Harris Yeah there are a lot of rules and I know under normal circumstances i cant get them out.

I seem to recall most of them setting it around half of a normal security deposit.

I hope to follow in your foot steps! 

You are better off comparing to similar age properties that sold longer ago than you would normally look back.

I've done all the normal stuff as far as contacting the IRS and I get hung up on every time I call.

in my deals I actually fund the rehab money and can put it on the HUD and then give out as draws like we normally do. 

Normally you will be quoted a Dwelling/Fire (also called Landlord policy by some carriers) policy if it is in the Personal Insurance area.  

That being said if they want to stay, I would vet them through your normal methods.

I normally guide my investor buyers to stray away from properties new on market because that gives us leverage on the homes we do go after and my clients love this route and we have no problem getting under contract on some really solid deals where they're able to offer at list price (or even below and also get some closings cost credits!). 

If it is $500 under market you might want to offer help you would not normally offer.