I assume you mean Return on Investment, like this:ROI = Net Profit or Loss/Amount InvestedI don't believe this is an appropriate way to evaluate a flip.

My opinion is while not directly correlated, when banks start losing money and increase in defaults lending tightens and large losses typically will lead to more job losses.

They follow state laws, or in the case of a VA loan, the borrowers entitlement will be reduced by the amount of the loss against the loan.

Cupcake shops sprung up everywhere, the Food Network started their show, Cupcake Wars in 2009 (still on) and then.... a few years later industry consolidation after the run-up.

You are correct, All of the standard Market companies I contacted would not write the coverage with an open loss.  

My family is very frugal and minimalist, so other than food and baby stuff and a monthly public transportation ticket, 10 dollers a month for cell phone,  we have no expenses.So what do i do with all my income?

W-2 income is similar to Retirement income in that rental losses can offset it if the rental activity is considered active.

To minimize my loss, I want to make sure that section 8 continues to pay me while she is in the unit till I get her out. 

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

And I can understand that with 5 kids some of that first WC payment did need to go to food.