If we assume (since you're doing FHA) that you're making a 3.5% down payment on a $250k property with mortgage interest of 5% (not sure what the current rate is, that's just a guess) you'd have a mortgage payment of $1,295.08 then add in PMI, taxes, and insurance and you're probably in the ballpark of $1,950/month.

Do your numbers include: vacancies, repairs, make readies, prop mgt, good insurance, etc..That is a small margin and will probably be negative once all costs are taken into account.

Which of course why a title report without anyone willing to issue title insurance holds zero value.

I paid the taxes, insurance, utilities, landscaping, etc.

When I initially spoke to the seller she stated that they were upside down on the mortgage and had out about $30k into the repairs so far including HVAC, electrical, and plumbing.

We do have a mortgage so insurance money goes to the lender which then does inspections to release the money.If it's still a desirable area it will still rent post flood.

We also of course have a large multiple insurance settlement that I want to invest intelligently which I'm thinking will make all of my goals possible.   

Insurance institute recommends original pine-sol after a flood.

@Aaron Johnson1-4 family homes are FHA eligible.FHA limits are based on each county around the country and the owner's ability to pay.FHA includes mortgage insurance for the life of the loan.you can put down as little as 3.5% for a 1-4 family home.there are some allowances for adding closing costs to the loan.

Purchase Price 175000 Currently Value   186000 Equity   45600     Mortgage, Insurance, Taxes   1165 HOA   120 Maintenance 10% 145 Vacancies 10% 145 Management 7% 100 Tenant Placement 8% 121 Total Costs   1796 Rent Price   1450 Equity   200     Monthly Cash Flow -346 Yearly Cash Flow -4150     Monthly Cash + Equity -146 Yearly Cash + Equity -1750Thanks for all comments in advance!