I agree with @Dawn Anastasi, @Dave Carpenter, @Jenkins Ramon and @Robert Taylor that it's much better to work with the inspectors than against them.Next time I buy a property subject to the CCI or Residential Rental Inspection program, I'm going to call the inspector during the due diligence period and request a pre-inspection.

One recommendation i would have for you is that you start at a bigger percentage company with an agent training program before you go to a 100% commission place.

Converting passive income/losses to non-passive without an arms' length transaction in between would not be acceptable to the IRS.  

Do you recommend any training programs/mentors?

The project will not be sold after the build, so that is another issue, after the build, all he will have is 35-40% equity, no stable income to support the loan except for the rent generated from the other doors, I am not sure if the equity will hold some weight when applying for conventional mortgage.

I have some clients that have used them and they have a pretty decent program for rental investors, but things move slow around there...

@Christine Ong There are programs that are 30 years.

It only takes 1.5 months to break even on the presumed 'loss' over a year if you were able to pull in a 800/mo rent.

Fannie Mae has unveiled a new program that allows previously excluded sources of income.  

Perhaps in that case, but the weight of that much roofing would be causing other issues i would think.