@Elisha CramIf you are operating this like a hotel or b & b, then you'll have to factor in self employment taxes as well.

When you factor in closing costs (up to 5%) when you buy and commission (6%) when you sell, the property is going to have to appreciate fairly significantly to come out ahead in a 5-6 year span.

You can definitely factor them into the equation if you would like to.

What kind of numbers do I need to factor into well and septic or would that factor into cap-ex?  

What are the most important factors to look at when trying to choose the best residential properties to flip?

You'll learn a lot, save alot of $ in living expenses, and also you'll be on site to manage the property as well (but still factor in 10% management into your numbers).

I would expected that rehab should be reflected in the appraisal value, but other factors such as tenant placement which are valuable to me as an investor, would not show up in the appraisal report.

If i use it to expand my rental portfolio, i can pickup at least 3-5 units.Wondering what others thoughts would be with the given factors.

@Buyan Thyagarajan You do get more bang for your buck with 3br than 2br, but there are other factors. 

3) I would suggest factoring in property management since there will probably come a time when you don't want to be managing anymore.