Also, would I be able to borrow enough with the new mortgage to rehab it or is that usually with borrowe money like credit cards and smaller loans?

The rehab costs have far surpassed our budget due to some masked  issues(missing copper lines in walls, dangerous wiring almost throughout...all covered with sheetrock) Also, the city is requiring us to pour new approaches at "multifamily" thicknesses; about $9k worth. 

Here are some other things that could go wrong which may cause failures:Unknown necessary repairs (i.e. sewer lines, roof, etc)Not having cash reserves to cover vacancies / major repairsUptick of crime / vandalism in neighborhoodVandalism of propertyInfestations (pests, other)Bad tenants / No tenants / tenant family issue impacting stay (i.e. death, divorce)Rezoning of school districts / Loss of accreditation of school district Insufficient Property Management (not addressing tenants concerns, no notification of repairs timely - causing further damage, etc)Not following market pricing on rental / raising rent to frequently or too much at onceLegal issues (i.e. tenants sue for injuries on property, taxation, etc) I think you get the idea.

:)Regarding my expectations from property management companies - I read on our sites that there are companies that do almost anythingThey have "property manager, a handyman, real estate agent, etc.".You need to come with description of what you are looking - let's say duplex and probably more details about the budget for the house, rehab and so on..After giving those details, the companies search for assets, offer it to you, you do your calculations and actually negotiate through themThey will handle the tenants, the mortgage, lawyer, fix issues - But all things should go through meThe problem  - knowing what is a reasonable price for them to manage my property and to trust them : )

The mailing address for the property points to a property that is owned by someone unrelated to the grantees.The property is not in tax title and no liens have been recorded against the property.

I asked if it can be addressed on Tues, the tenant threat me that she/he will get their own plumber and deduct from my rent.

The description in my subject line may be a little confusing - I have experience building, rehabbing, buying and selling, but I have been out of the game for some years.

On the legal side-If a contract is written up and the MLS states a fact about the house that isn't corrected or addressed you (if all paperwork is legal and properly done) can enforce those facts and have them completed by the seller and enforced by the court. 

For example, if I buy, rehab, and rent for 3 months then sell, is that considered a flip (or not) by the IRS?

Property is in a c- minus area.  6 units all 2 bedrooms, Farily new roof/boiler,, etc and not much rehab needed. this is mostly a turn key property.