That being said, all vacant land is not equal and some or all of the problems above can hinder your "flip". 

My assumptions include the following: 8% vacancy (equals 1 month of vacancy), 10% for property management (didn't know if you were self managing or not, but it's always good to put in just in case you decide you do want to get it managed), CapEx and Maintenance of $1500 per year, insurance of 1200, taxes at 3500, I assumed you would be paying no utilities, that those would fall on the tenant and that you would be borrowing the 15K for the cosmetic updates, so I added that to the base mortgage amount. 

I would also point out civil asset forfeiture is more likely because it really does pay for itself.You might also want to follow the many cases where people are challenging prosecution by claiming equal protection violations.

You can cut your postage cost down to less than $0.28/piece if you mail at least 200 equal pieces.

From my view, it sounds like vital information was provided to the landlord of the premises. 

Just to be clear when you refinanced 75% of the appraised value equaling $41,250) You paid back the first loan of $35,900, leaving a remainder of $5,350 in your pocket correct?

A lot of people use a 1% or 2% rule of thumb, meaning the rent income should equal 1 - 2% of the purchase price. 1% would be $2,700 a month income and you're projecting closer to .7% which is not a good deal.You could also evaluate the property using the 50% rule and see that it's not producing enough income for you.

All that being said, it is vital that you work with a securities attorney to make sure you CYA (cover your a$$) from every angle; as @Brian Burke stated, jail time is at stake.

and a vital portion of my financial strategy). 

There's a lot of good areas and an equal number of bad areas.