Are you able to give a break down of the numbers on the deal?  

This builds trust and can break the ice for you which will ease your nerves when communicating with the seller.  

Obviously I don't want to be breaking laws.

At or about 2%, much lower than that (when using MLS) isn't a deal and I would break even, lose money in the opposite of an "up and coming" area. 

Potential break down:$1818.91 mtg payment assuming 3.75% note rate (400k sales price 3.5% down with 1.75% upfront MI financed into loan FHA)$273.42 Monthly MI FHA (factor when LTV is 95% or greater is .85% annual /12 months)property taxes about $650 per month based on aboveBoiler/heater about $400 average monthly based on the above between high months and low monthswater trash - assumed - $300 per monthElectric (assumed tenants pay this) $0.00property management 8% of gross rents $371.20 per/morepairs $300 per/moAssuming 4640 gross rents, the net monthly cash flow will be around $526.47  a month.

Yes, servicing is a cost of business and effects the ROI, the discounts I usually work at, $15.00 won't break my return.......it's all relevant.But, if you collect on a small note, I suggest you let an attorney tackle notices of default or hints to modifications......if all goes well you should have no issue.While you can hold a note long term, I'd rather see them pay it off as quickly as possible which increases your ROI and gets you ready for the next deal with money in hand.

Break Down example: Loan amount 100,000 (30% down payment)50,000 to buy property40,000 for rehab10,000 utilities, insurance, taxes, closing cost, etc.

And managed to hoard so much stuff that there's a complex and full-bodied stench that pervades the whole house.

For instance if I'm flipping a house I might work from 6 am until midnight with a few breaks in between.  

I didn't consider this to be a major impact to the market in Spokane initially as within the region there are a good number of universities already, but you guys bring up a very good point of bringing in additional bodies that will be looking to stay in the area for an extended amount of time.