It is comparable in square footage but does not have the basement or washer/dryer hook ups, plus one of the bedrooms is upstairs (very narrow stairs and steep ceiling angles in that bedroom).

I have a property with a very low initial basis compared to what it will  sell  for. 

Keep in mind that the local rankings in order of desirability, as harsh as it may be, are as follows (sorry locals, I grew up in Brazoria): 1) Lake Jackson and immediate surrounding area (Clute not viewed favorably by long time locals) 2) Angleton area 3) Brazoria 4) West Columbia 5) Sweeny 7) Surfside and Freeport maybe tied. 

How do we take fluctuating rates of HELOCS into account... the thing about HELOCs is that there is risk in rates rising, but there is also more ability to affect your monthly payment and therefore increase your cashflow by paying down principal... which you can't do with a fixed mortgage.What are your thoughts for what points to consider and what levers to pull when comparing the two options when its a HELOC you're coming to a deal with?

Insurance premium of $1,200/yr seems a bit high, at least compared to what I'm paying in Maryland. 

The REO world has several differences compared to retail Real Estate.It is common for the listing agreement of an REO property to have unique or interesting provisions that allow an assigned agent to continue marketing a property as active (even when the seller accepts an offer) until that buyer has performed and the property is sold. 

Honestly, I am looking at cash flow and appreciation as well, I think the RE prices there are very low compared to anywhere else in Southern Ontario and there is a fair amount of room for appreciation.

How do you more seasoned investors go about getting comparable sales data for a potential off market deal? 

They are a great resource at a reasonable price comparatively.

At a very minimum buy your own crummy router instead of paying for theirs over again every year.you can also try adjusting the wifi to use a different channel. search the app store / play store on your phone for wifi analyzer. connect your phone to the wifi analyzer and it will show you the relative strength of your network compared to others in the area causing interference.