I see they are just lumping it in with the "security deposit no greater than 1 month rent" rule, but anyone I've consulted with does not consider the pet deposit associated with the security deposit -- a slippery attempt to disassociate the two deposits. 

You would also have 3 units worth of rental income + however many units are in the project you are attempting to purchase.  

I have been educating myself for the past month (watching webinars, listening to the podcasts, reading articles, attempting to analyze "deals," and research viable markets-I think I've got that part down) and although I know that I won't feel totally confident and I just have to jump in and go for it, I really can't afford to lose money.

His advice was based on the fact that because the property is still in the redemption period, if we attempted to evict, and it went to court, the "squatters" would only have to say "my brother said we could stay here" and they would win, and we would be out court costs, time, and headaches, since technically the brother (prior owner) has rights to the property still.

Should I complete this refi and rent leaving the house as-is or should I consider updating floors and bathrooms and attempt to refi again with possible cash out? 

Do not attempt to write this agreement on your own. 

We started construction 6/19 and we're attempting to get the house ready for rent in August to beat the school year starting.

We started construction 6/19 and we're attempting to get the house ready for rent in August to beat the school year starting.

We started construction 6/19 and we're attempting to get the house ready for rent in August to beat the school year starting.Purchase Price: $300kDown Payment: $10kPrincipal: $290kMortgage Payment: $500Taxes/Insurance: $500Lawn: $100Vacancy/Repairs/CapEx: $360Total Monthly Expenses: $1435Total Expected Rehab Costs: $65k-70kTotal Expected Monthly Rent: $2400-2500Total Monthly Cash Flow: $965-$1050CoC ROI: 14-15% What made you interested in investing in this type of deal?

In your “first attempt” at REI, what methods were you using?