It seems a little messy splitting equity and the cash-out refi check, as opposed to a flip where you just split the profits and walk away.

Don't walk away because it's not laying out on a silver platter just waiting for you.

We loved the neighborhood so my wife walked down the street to the house for rent knocked on the door and told them we would buy the house.

If the builder never transferred title, they might try to argue that its comparable to selling a model home within a new construction developement (new home, but has had thousands of folks walking in and out for months...sometimes years).I would be confused as to why someone would offer it as new construction when it had been lived in unless their aim is to avoid capital gains, but you say lived in a few months and not two years so that does not track.

Yea you aren't getting the pleasure of walking into an office, but they are responsive and happy to help quickly through email.

I don't think we can expect at this price point the flooring to be like the vinyl you walk on in large department stores like walmart (those are commercial products)... but for the price, as long as you realize that there is a give and take, you'll be fine. 

I don't see loss of rent coverage on this quote - you should get that.This quote does represent the right type of insurance at least.In terms of when to start the policy, you'll want something right away so it's just a matter of how quickly you expect to have tenants and the vacancy provisions of the policy you're purchasing.A good agent can walk you through that.

I decided to walk away due to it not being in good condition with bed bugs.

How did you not notice this when your GC walked it? 

There is a lot of walking traffic which is always a concern for me. $700 for a 2/1 in that area is hard to believe but I could be wrong.