I'm expecting my head unit to arrive today and am looking at the possibility of adding a backup camera. I was looking at different cameras and some say that they have the ability to flip/mirror the picture and others don't. Does the F700bt have the ability to flip the image??

no

i have got a cheap ebay camera and if i flip it upside down during installation, the image would come out okay (no need for left-right mirror). I am using this on the f500bt. i suppose it would be the same for all f-series.

I just bought the same camera off ebay for $28 shipped -- good to know it does the job, that's exactly how and where I was gunna install it.

How long does it take the F-series Avic to switch into backup camera mode (with image) from when you first start your car?

If you switch to reverse right away, camera will come up. If you wait and unit gets busy with loading iGO etc., then you have to wait until it finishes booting.