I probably should also have mentioned that I renovated my own home, completely, including a second floor addition back in 2005.

They aren't going to negotiate a discount on the mtg for you, as the new owner.  

In addition, a form should be sent to each tenant requesting a list of payments made to the PM for the last three months, at least for the first year

Obviously I don't consider this a great deal and I have no reason to believe that he will actually pay me the additional $600.

I try to listen to at least two podcast per week in addition to reading the Blog. 

Go back and seek additional guidance from your document sponsor and your CPA.

Quick question before I give advice -- based on the cost numbers ($28K purchase, $50K rehab, additional $15-20K rehab, plus any purchase/holding/selling costs), it appears that there's a good chance you're going to break even or lose money on this deal.Are you prepared to do that? 

Additionally, I will be attending the Ocean County Sheriff Sale this coming Tuesday to observe (we have two private lenders who are interested in working with us).Thank you in advanced for any assistance you all can provide!

@Jason Bradstreet Please provide additional details about the type of property you are seeking.

Note: if you have already reached maximum FIFA contribution from other ordinary income, then this additional ordinary income created by turning investment income into business income would be taxed additionally at only the Medicare rate.