It would make a great rental.4) Morally, I feel like my aunt (by marriage to my uncle) should be entitled to the money (sadly, she is just going to use it all on drugs and alcohol.)

Wondering how these people are getting the $500/month, unless they're just leaving a ton of equity in the house when they refinance to boost the cash-flow. 

Make sure the value can be boosted when you do Refi.

That results in removing any lender mandates to purchase flood, and thus eliminates any yearly flood expense, boosts NOI, adds a ton of property value back to you.

The moral is: I don't view real estate as a "cash flow" versus "appreciation" areas.  

Moral of the story: if a deal doesn't work from a numbers standpoint, always make sure to ask about creative financing!

For now, this may be enough to begin a shift in demand for housing (and hopefully for builders as well to boost supply).

Falling mortgage rates and a promising housing market have given a much-needed boost to builder confidence, reversing a 4-month decline.

Don't think you can shave costs or boost the sale price since it's a flip. 

Spend some time building relationships with active, seasoned investors so you can find someone who will show you the ropes so you can both make money and you will learn to do things legally, morally and ethically from the start.