You might also consider an ad on Craigs list stating what you did in your post.

If you do this, you could consider an "equity split".

By and large realtors1) want the easy path to making what I consider an enormous profit for little effort2) don't want to keep up with the market and what investors need.

Again, I have already spoken with the bank and what I got from them is that they may consider an offer of about $75,000, (Current value $94,000).

I know the markets varies but what is the minimum a US investor should look for in order to consider an option.

. $212,000 loan @80%30 year fixed, fully amortizing using our Paper Saver process - like stated income but no charge for it6.375% would cost you 1.00% discount point - 6.532% APR$819.80 total lender feesIf you consider an 80/5/15 - where you put 15% down instead of 20%$212,000 loan @80%30 year fixed, fully amortizing6.375% would cost you 1.00% discount point - 6.532%APR$819.80 total lender fees2nd lien of $13,2508.375% would cost you 1.00% discount point ($132.50) 8.513%APRno extra lender fees on the second.So you save $13,250 and have an additional monthly payment on that second of $100.71 per month which means you break even in almost 11 years.

To answer your specific question, property taxes and insurance ARE part of the operating expenses.Operating expenses do NOT include Principal and Interest, capital expenses, or depreciation, (although in reality you should consider an allowance for capital expenses in your cash flow analysis).From a practical standpoint, you subtract the mortgage payment (P &I) from the NOI to get your monthly cash flow.

You may want to consider an addendum to the lease explaining that there will be at least annual inspections and a process allowing the tenants to correct issues.

If you flip, you may want to consider an S corp because you avoid the self-employment tax... however, as @Barry M. mentioned above, you can set up an LLC and then elect S corp status for tax purposes.

If you occupy half or more of the building you might consider an SBA, they usually have a good track record of being renewed at maturity if there were no problems.