Big difference if the property has an ARV of 175k vs 215k.

Thinking about your refi fogs up the picture.The old properties: same tax position as before refi, absolutely no change.The new properties: your capital gain, if any, is the difference between the full sale price and the  full purchase price, regardless of financing.

No different than any other natural disaster... hurricanes in Florida, wild fires in California, Volcanoes in Hawaii, etc.Regardless, your property insurance will rebuild your house if it is hit by a tornado... so ultimately there is no reason to avoid the area because of that risk in my opinion.  

Your CAP rate will be dangerously inaccurate if you calculate expenses incorrectly so let's break those down.Utility Set-up- As an overview you need to know the difference  between city-provided utilities and onsite such as Septic Tanks with Leech fields, lagoons, Wells, EtcGetting more specific what utilities are maintained by the community, paid by the community vs the tenants.I will give you a quick example, I own a park with a bunch of multifamily manufactured units of which I pay the electricity bill.

I'm interpreting "alteration" to mean any change to the existing unit but perhaps that's viewed differently by the jurisdiction that "alteration" means any change (such as new construction) on the lot?

I'd recommend talking to a couple different lenders and providing them with all your income documentation to see if you can qualify now without waiting the full 2 years. 

Both dwellings will be on the same lot at different ends, far enough from each other.  

I did not mean that Section 8 should be treated differently, I added that info in case there was some regulation that I am not aware of that may change people's thought process. 

Hi everyone, I know different people have different preferred methods for how to pay for their flips.

The biggest difference to me would be in financing.