Ethical investors do what they say they will do.

I can only speak from being broker licensed in CA and here and probably there in MI you will probably have a "Fiduciary," duty to act honestly, ethically, and in the clients favor.

As to this discussion, your tax rate may be too low if you end up holding for less than 12 months and don't get long-term gain treatment.  

instead of being an investor creates different rules of ethical disclosure to potential buyers, and I have a pre-legal degree, too. 

It shows evidence of past termite damage with no professional treatment.

There are specific agreements that are required and that must contain very specific language in order to qualify for tax-deferred treatment. 

Do we assume that the treatment by the borrower mirrors that of the lendor?

I have a ton of passion to learn, the work ethic to figure it out, and the guts to fail without reconsidering.

If their income which pays you comes from the folks who are in treatment and the repairs affect the amount of income they can earn then it is safe to assume the payment obligation will fall under stress as well.  

I am usually pretty forward in comparing our treatment of real property to be no where in the ballpark as folks who actually fix and flip full time or alike.