Yes i am trying to "hack" my housing expenses. 1st baby arriving in June and would like for my wife to not have to work.Within 5 years I would like to own several MFH's that all cash flow enough combined to pay the mortgage on a SFH (Dream home).

based solely on what you arrived at as far as valuations and possible purchase price, it sounds like it may have great potential.

In assessing the deal you can arrive at your target return number and work backwards through the expenses. 

Despite that fact that they were ex-felons, it seemed fine at first, but as we got closer to the deadline, they quit responding to my calls and texts.Sure enough, when the day to leave had arrived, they still had a ton of junk that hadn't been removed, so I was forced to call the cops at that point.  

Contractor would guarantee that he would cover any cost above the $550,000 noted.I want to arrive at a fair treatment for this deal.

I can't speak to anywhere but where I've purchased but there are a lot of bad surprises that come from arriving at valuations based solely on 3 comps and considering nothing else (no, I won't take the time explain my process but look up the appraisal expression "adverse conditions" as a way to get started in the right direction).So, insurance to keep the sellers of sub to properties needed to be $1.5 million. 

Yesterday, as I arrived home, I noticed 2 guys eye balling a house across the street from mine.

This hasn’t been anywhere near as easy in the recent past.It It’s dangerous to assume with these changes that lenders will be as benign about enforcing warranty deed transfers in the future as they were in the pastI will still engage in “subject to “ transactions when the opportunities arrive.  

So you send 10000 letters.30% will be undeliverable and you need to pay for skip tracing.So you have 7000 mailers that actually arrive (30% of 10000 never get delivered, that is 3000, thus 10000-3000=7000).OK from those 7000 mailers that do get delivered, lets say 3% get seen or opened. that is 2100 people will see your letter.Although 2100 people see it, only a few will be interested and a lot will get pissed off.

A better understanding of the cause may help you arrive at a more informed decision.- Prior to where is she living now, does she have references, etc.?