It became clear she wanted to milk the situation whether she had any legal standing or not.Day 3: Send written notice of change of ownership and officially serve 60 day notice to vacate.

I’m not saying it’s a no -go ,but I am saying practice your due diligence and get some professionals involved before you get too jumpy  if those numbers are correct that's about as good as it gets spread wise in the Portland market.. 230k ARV is one of the very cheapest areas of the city if its a free standing SFR detached.. and you say its on septic that leads me to believe its not in the city.. and seller warranting that stuff is worthless.. just try to collect after the fact when he is long gone with your money.. get a good contractor in there to assess the condition and what it will take to rehab.. 30 to 40k in our market is basically cosmetic only.

I am sure that this has worked out for someone out there, but these are just a few points off the top of my head that stand out. 

Standing at the bottom you can not see that last step.

Time will tell, but seeing as this isn't Zillow's primary business, it doesn't have to stand alone and can complement the company's other businesses. 

These will be a good start from the books stand point.

@Eddie Quirk So if it was in GOOD condition, you would stand to make $75,000 gross profit.  ($160,000 sell price - $85,000 acquisition price).However, you have all sorts of expenses - and I'll just guess at your costs below. 

I stand to collect a significant windfall in early 2019, and I am contemplating how best to put the money to work.

In other words, if you can get a laborer for $9/hour, but you have to stand there and supervise him and also provide tools, that is not the right comparable expense.

In your experience, where do you think I stand on the fees and case in general?