However, if you want to flip you may be able to make irregular chunks of income quicker that can make up the difference.Which leads me to the utilization of your equity.

So as long as your insurance, property taxes, property management, utilities maintenance, repairs, vacancy, and capex come to $4/mo or less you’ll be fine.

.: Quote from @Mark Cruse: Not sure why suggesting a person utilize an off-market strategy is bad.

The property cash flows at a 15% ROI…………………..before insurance, debt service, utilities, management, vacancies, repairs, maintenance, payroll and property taxes7.

Now for my out-of-pocket expenses:Down payment: $7500 (Hard money loan 90% purchase price 100% rehab)Closing costs: $6500Inspection: $400Agent's commission: $5200 (didn't raise purchase price of house with seller concessions, so that money didn't apply to the commission sadly. won't make this mistake again)Holding costs: $1300 (one interest-only payment of $770, roughly $200 in utilities and $360 in insurance)Total: roughly 21 grand. 

More specific: He stole months of rent and utility payments from a tenant (and threatened to evict her!)

From time to time I will hear of people who utilize it well and gain business from it. 

Remain responsible for rent, utilities, and other terms until a replacement tenant takes over.#2 can be a bad option in the middle of winter when renters are harder to find.

Rent out part of the space at least to help pay for mortgage and utilities.  

This step would include understanding City zoning & platting, locating utilities, researching City codes for development requirements (big ones include detention), etc.