Leveraging the creative corners of agency guidelines is my Favorite Thing.Another angle that I think would have higher odds of success: Increase the price and have the seller put the renovation funds into an escrow holdback with title.

Having to use their title company is a bit odd too as generally, you (the buyer) have your own attorney representing your interests do the close (NJ requires attorneys close real estate transactions). 

I suppose any CPA would tell you to be cautious about paying yourself to do the junk removal, or otherwise trying to inflate your expenses...But cleaning, painting, repairs, landscaping, advertising, insurance, taxes, etc are all very common operating expenses for a rental property. 

@Jalaj Punn   Pardon my naivety but something seems odd here.

Even if they were sued, the odds of losing are small.

There are some multifamily properties that are highly inflated but that doesnt mean you cant find good opportunities out here.You should attend a multifamily meetup and meet with brokers and other investors in the space to get a fill for the market.

Staying on the sidelines waiting for a correction/down cycle may cost 3.5% per year inflation..10% in 3 years.

I am talking about Las Vegas or Orlando or the hundreds of college towns all over the country 9) Increasing odds that Trump gets voted out in November 10) Massive financial pressures on state and local governments11) 2nd quarter financial results will pull the stock market downAnother massive dose of stimulus and extended unemployment will be needed to keep things going.

Daisy chaining increases the odds something will go wrong.  

After adjusting for inflation, "real" consumption increased 8.1% in May but is down 9.8% from a year ago.