We were able to talk with the seller and the PM and analyze the deal pretty extensively and just submitted our offer yesterday.

Here are some things to consider.Coin operated Laundry - You make money, but you have to collect coins and machines are subject to vandalism/theft. 

Whatever you do, make sure you use a good attorney in Oklahoma who specializes in real estate and understands investor transactions.Or, and I'm tried of typing now so I won't go into great detail, you could possibly do a Joint Venture with your mom where she (with you as a partner) sells the house to someone else on owner financing, gets a down payment, and then finances the rest at around 9% for 15 years, but you agree that you will find the buyer and manage the payment collections, dealing with the buyer, possible foreclosure, etc., in return for X% of the cashflow.

., since there's nothing major that needs to be done (otherwise I would use contractors rather than the tenants)--and then sell it to a local investor for $85,000ish who wants cash flow but doesn't want to go out-of-state or just refinance and keep it as a cash-flowing rental and then use the money from the refinance (or the sale) to, depending on how the market's looking, collect additional cash-flowing properties in the Antelope Valley or simply sit on cash until we have another correction.  

They turn the houses extra space into rentable units collect rent and do not pay taxes on the rented space.

But  I have the lanldords policy at 300k per occurrence and don't have the extension from the personal to the rentals (which you may want to have professionally examined to make sure that is the case).

The BK stays all collection efforts.  

As an extension to this question, should inflation in be included in any of these calculations?

I'm not in this business for confrontations, owning properties that have to be re-rented more than once a year, and doing the extra work involved for lower grade properties.Another investor I know has properties in marginal areas and has had them for many years and successfully manages them, but he goes and personally collects rent every Friday, he's a big guy and doesn't take and crap. 

Until it is paid the IRS can attach to John's assets in order to create a collection opportunity.If John has equity the lien will be paid from the proceeds.