Thanks Alex, I could utilize those resources that was something I kind of wrote off.

We have found one for 150K, and I am estimating 1600/mo in revenue (split utilities).

@Adam FrancoFlips are recorded at your regular income tax rate, subject to self-employment tax.You figure out your final cost basis (purchase, rehab, insurance, property taxes, financing, permit fees, commissions, utilities, etc.) and the difference between the sales price and the final cost basis is the profit made that will be taxed as ordinary income.You should speak with a CPA to help organize things and try to minimize the tax impact.

It also has separate utilities but shares the septic system.

You should definitely require 2 forms of "proof of domicile elsewhere"  acceptable forms of proof would be utility bill, lease agreement, rental receipts, photo id. 

From there look at average vacancies the same way and maybe call the utility companies and see if you can get an average of what was spent there in the last few years.

I do wonder about the potential statistical increase in occupancy if you utilize leases.

Utilities?

Owner is responsible for water/sewer/trash and utilities for the 1BR unit.

For example, utility bills, vacancy rates, interest rates etc are all random variables that we try to account for.