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I don't think Zillow does anything to convince people that they are not giving appraisals (heck, the title of the site even says "Real Estate Valuations"). In fact, if people really thought that the values were not appraisals, they wouldn't go to Zillow in the first place.

I'm seeing two trends around here: (1) people advertising the "Zestimate" along with a link to the Zillow page on their "for sale" adds (Craigslist types of listings, not MLS) and (2) sellers going in to "correct" the Zillow information (e.g., change that it is a 2 bath, not a 1.5 bath, etc.). Both of these suggest to me that sellers (and thus, by implication, buyers) are believing these estimates to be somehow meaningful.

If you are planning on buying and reselling within a couple of months then you can't think about the neighborhood getting any better than it is. Your biggest challenge will be to honestly estimate the resale (ARV) value of these homes before you buy one. Beware of the temptation to think they should sell for more than their true value just because you think things may be improving (or have the potential to improve). If you overestimate your ARV you are setting yourself up to lose money.

I don't think neighborhoods magically turn around. I have seen streets where investors buy almost every house, rehab them all, and try to make the whole area appreciate in value, but I think that's rare and involves a significant investment. Generally it's going to take a large number of owner-occupants who care about their neighborhood to turn it around. With just a handful of improvements you are unlikely to make a significant impact, and most homebuyers will continue to opt for other neighborhoods.

Have you thought about triple-net properties? If the problems with the apartment building were related to management headaches and maintenance expenses, this might be something to consider. You get a potentially smaller return, but also a much safer and more predictable (as well as hassle-free) investment.

Just be sure to look at the specific home warranty carefully. They have lots of exclusions and some are only valid for owner-occupied property.

The problem is that there's not much room to bring down the commission. Assuming you're in a location where 6% is the norm, you're basically stuck with the 3% for the buyer's agent (you need that to have other agents bring their buyers to the house). So, all you can do is try to have your agent go down to 2%, but that's a full 1/3 decrease in her income. That sends a huge message and only saves you 1%. Personally, I'd pay the full the commission as long as you're having her do the full work, unless you have the potential to bring her a lot of listings, in which case you may be a position to talk "bulk" pricing.

Well, you better check the lease, of course. Usually it states who pays what in terms of utilities, so even though you switch the meters over, each individual tenant will start paying if and when you get them to sign a new lease. Also, the current tenants probably feel that the amount of rent they currently pay "includes" the electric (i.e., is higher than it would be if they had to pay the electric themselves), so they will likely perceive this change the same as if you gave them a huge rent increase.

Why not just get your own agent, especially if you're already having trouble with this guy? If it's not going to affect the final price at all, wouldn't you be better off having someone else on your side? I don't like the idea of one agent gets both commissions, I think invariably he/she will have more loyalty to the seller. I don't even think it's legal in some states.

I also worry that a seller's agent may pre-judge you. If he concluded that you are a little green (whether you are or not) he may have it in his mind that you're not going to end up buying the place and thus he may be doing the bare minimum for you. If you have your own agent, I think the dealings would be more professional.

Foreclose or call the loan due? I only ask because I assume the second lien holder would have time to pay off that loan (which, I'm guessing, might have been their intent behind foreclosing on the second in the first place).

What's the problem with charging a fee? Our local REI club is wonderful, but it has expenses that have to be paid -- speakers, a place to meet, a classroom for courses, tours of rehab houses, etc... What kind of club could you have if nobody paid to belong? A couple of people getting together for lunch at McDonald's, maybe?