In reality, the insurance payout reduces the adjusted basis.

One of the areas we see investors needing the most design help in is bathrooms.

I've bought a couple sub-to's in the past and about to close on one next week. 

If you were able to increase the value of the property significantly after the rehab, then you could bring the deal to a community bank  to refinance and take the hard money lender out.You keep all the equity and don’t have to file a partnership return for your annual tax return, which can be costly.  

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

You definitely would want to read through the county laws again.If you don't want the extra load up front, best to wait until you get the license.

I am of the opinion that you'd be better served using that money toward the down payment on a property.

The current price of the house is worth about $900000.

It’s paid off, I would “like” to leave it that way & maximize the cash flow while paying down the heloc between the rental & other income.  

Are you looking at the maintenance/repair costs of the homes once in place, W/S/G costs. septic expense if applicable?