I didn't read through this, but this is FEMAs guidelines: https://www.fema.gov/media-library-data/1428941960043-a8f37b7e3af25f47396bbff04e7bf036/FEMA-HFIAA_ECFActSheet_040715.pdfI also have a property in a flood zone, no elevation cert.

We were able to claim the vast majority of what they were paying as medical expenses on his Schedule A (subject to the 7.5% floor (at the time)), but it ended up being a huge deduction for them regardless.  

They want clean deals to get the file off their desk so they can get a bonus.Not have an investor tie up a property for months and then go out of contract because they couldn't find a buyer to close or the one that did want to buy can't.I am not saying you can never do assigning but the vast majority of times if the property is priced right a cash investor will be all over it OR the asset manager will take a much higher offer from a home buyer who wants to live in the home.Even with the home buyer financing the asset manager will go for that sometimes and take the risk if it nets them more.Now there are some real piece of crap properties out there that not many want that banks own where you might be able to structure a deal like this.As far as hard money lenders most that I know want you to have good credit these days.Before they were loaning out on bad credit or no credit when the market was rising.Now they charge much more points and want the good credit so that after rehab the investor can refi into a conventional loan instead of the hard money lender foreclosing on them.Now in the commercial arena private money,hard money,regular loans,joint ventures are put together differently.good luck

And I believe the idea of FNMA/FHLMC renting out their vast trove of foreclosed houses is still slated to be tested.However... it makes sense when you're runnig pro-formas for new purchases, that you use VERY CONSERVATIVE market rents (or even something lower) for private payers, not higher Sec 8 rents, as there will inevitably be intense pressure on these budgets, and amounts and vouchers will be curtailed.

Your only issue is language and culture barriers - they're very foreigner shy and where the good deals are, almost no one speaks English - so you have to rely on turnkey operators like ourselves.Personally, the vast majority of our portfolio is Japanese, with euro and USA hedges - wouldn't have it any other way, but I'm biased. ;)

The vast majority of properties offered are still going back to the lender.

I know what wholesaling is , and how to do it, and I wouldn't waste my time with the vast majority of "wholesalers" I've run across.

I also agree that since real estate is an extremely vast and complicated matter at times that Josh and Brandon or other moderators can't be expected to be fully informed as to what is legal, ethical or good business practice in every case.

@Evelyn Greenwood good question - in the vast majority of cases, refinances do not create taxable events and you have nothing to worry about.

Overall,  I’m convinced that my plan is within the law.Wayne, for abandoned “Mansions” your proposed  strategy of acquiring a superior interest and using it against a mere squatter would indeed be effective, but do see my reply to Rick Harmon, just above about why the vast majority of these properties will never become the target of competing investors –low value, not worth your time, and not readily identifiable.