Sorry for the obvious ignorance, but I'm interested in note investing and have only done a little self-education.

You saying "y'all" to a Dallas native will be considered ignorant at best and rude at worst.As my grandmother would say...

Will he/she ignore that to always calculate in some reserves or will those mitigating circumstances actually be considered?

Your friend has about $7k per year cost of maintaining her property - if we ignore utilities (unless they are included in the condo fee, which sounds too low to cover all utilities) and maintenance. $280k divided by $7k is 40 years.

That said, if the OP is trying to do a HELOC on their existing home and not this subject property, than my comments should be ignored totally, except the part about THEY ALREADY DIDN'T QUALIFY FOR THE HELOC DUE TO INCOME.Also, "after rehab you can cash out"?

Hello friends,please excuse the perhaps ignorant nature of this scenario.

Sorry for my ignorance however, I must ask this question: Does anyone know the difference between "Purchase Closing Cost" and the "Sale Closing cost (not including commissions)" entries on the "Fix and Flip Analysis & Reporting Tool" in the Bigger Pockets calculators?

Unless there is something so wrong with the house that not even I can ignore, then me not selling to one cash buyer isn't the end of the world. 

Or should I go with just getting 2 or 3 secure cards  to start building my credit and ignore taking care of the debt (credit score-610)?

So if you want to estimate the income that will show on your K-1, take the forecasted NOI, subtract loan interest (not the principal payment), subtract depreciation (take the purchase price, multiply that by a decimal that is the the ratio of structures to land assessed value on the property tax bill (usually between 0.6 and 0.8) then divide by 30), then subtract amortization (nearly impossible to predict, if you ignore it you’ll just get a conservative estimate of the taxable income).