So a loss of about 55k We did a lease to own option so I could immediately take over expenses but keep their primary resident loan and interest rate.We agreed to a deal which would cover all their expenses at closing, their remaining loan balance, and $45,000.

Just be sure to factor in interest rates and fees when running your numbers.Know Your Numbers – Accurately estimate rehab costs, holding costs, and selling expenses.

We would need to know your current operating expenses (and rent) to be able to provide any suggestions.

I dont know the terms of this specific home equity agreement but the ones I have seen in the past were pretty expensive.

And you have taken the extra 150 hours required for the broker's license? 

It is more expensive but may not require an appraisal and can close in a couple of weeks. if I can wait then I use the most competitive rehab. lender after obtaining multiple quotes. 

My experience is that more than 90% of new RE investors underestimate expenses. 

Below is the link of the property:https://www.loopnet.com/Listing/927-Dixon-St-Tiptonville-TN/...No idea why it would be listed in the title unless the owners took some kind of government incentive that requires them to only lease to section 8 tenants.

One of my buy box requirements is the house needs to cashflow at least $500 per month or I am not buying it. 

So a loss of about 55k We did a lease to own option so I could immediately take over expenses but keep their primary resident loan and interest rate.We agreed to a deal which would cover all their expenses at closing, their remaining loan balance, and $45,000.