I would like to have some extra margin of safety since Houston rents are likely to go down over the next 1-2 years.Cameron - Since you are from Houston area, are my expense estimates reasonable?  

Here is a part of the letter, I sent to the seller:The home inspection was completed on September 29th (please see attached) and the following issues were pointed out: 1.The wooden floor frame in the middle unit is deteriorating due to either prior water leak in the bathroom or due to moisture infiltration through the walls and foundation.2.There is evidence of significant settlement under the middle unit bathroom and north closet.3.The settlement of the floor and walls has also resulted in settlement of the roof frame above this area, ceiling shows cracks.4.There is an obvious depression on the roof – water is ponding on the roof above the middle unit, which adds excessive weight on the roof and potential for leaks.5.Asbestos containing material has been found.6.The current bedroom heat installations in the north and south units pose a safety hazard from carbon monoxide, fire and oxygen depletion.7.An electrician performing upgrades did not use ‘arc fault breakers’ in the north and south unit breaker panels, which is required by the national electrical code.8.Upgrades to the electrical system, promised by a real estate agent, have not been completed yet.

@UgwuUche take a look at the GSD Mode videos and listen to the pod cast, Joshua Smith has a wealth of information for RE agents.  

And periodic inspections, and posted license details, and conform to regulations for safety, etc, etc.

Safety come with a price the same as taking financial risks or being on welfare.

My new adopted model is "live my personal life like Dave Ramsey and invest like Robert Kiyosaki"Thanks for reading this short essay and I hope to get to know all of you on here!

I will read through and start participating in discussions but I am hoping to learn a lot from the experienced folks here so that I can jump into this without being in analysis paralysis mode for a very long time.

If your debt is being paid at a high rate, your best investment probably would be to pay that down, not even considering other factors like stress, credit score, or safety reserve should something with REI go wrong.With that being said, if you can find a great deal, your expected return on that might be significantly better than your student loan costs, and therefore it would be prudent to jump at such an opportunity.Good luck!

Give yourself a built-in margin of safety for every offer.  

@Dion DePaoli  f IRS redeems  then I think they have to make you whole plus statuary interest which I was thinking was 9%... but any improvements you do to the home past any that are for health and safety of the home would not be reimbursed.I have bought quite a few at the court house steps over the years with IRS liens I liked them actually because 99% of bidders won't bid on them because they cant backfill right away with their LOC or HML... this lead to some pretty spectacular deals in the day.