The profit if any is small so any unforeseen items could easily eat up any potential profit.Good luck!

Thanks for responding again though :-) I blame the mortgage goblins for eating my response.

The risk to me is that once the appraisal is done, I will have to eat that cost if seller gets funded.  

While it is true you can deduct the mortgage interest, management fees, and other expenses, when your passive losses outweigh your income, you end up eating the loss. 

Your agent, by not finding out if they were getting paid by the seller in this case made the mistake and THEY should have to eat it if they were a professional and didn't do their homework on the deal.  

Investing can be a dog eat dog world and quite lonely.Good luck!

Here are some great articles to help you decide.Turnkey Investing 101: What to Avoid & How to Know if It’s Right for YouTurnkey Real Estate Investing: Can You Really Have Your Cake and Eat It Too?

I spent the past weekend visiting the community, eating at restaurants and learning as much as I could about the local market. 

I know rental rates in Charlotte County haven't quite blown up the way they have in Lee (can't find a rental house for less than $1,000 a month in Cape Coral)... but there should still be plenty of opportunity there with a buy and hold strategy.Financing can seriously increase your monthly rental income as it increases the number of properties you can own, but it eats in to a portion of your net profit as you are paying a for the financing, have higher costs of acquisition (think of the closing costs on a loan!)

Since my intention was to buy on LC and keep it I had agreed to cover the $400 in owed taxes and cover the closing costs so I ended up eating more than I likely should've.