Another issue we are having is that there is nothing to compare this facility with. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

We secured hard money for the pre-approval; however, we'd be interested in comparing terms with other lenders over the next few days.

Considering that a buyer could possibly also negotiate a better price and/or pay cash and avoid the mortgage expenses since the amount is quite low compared to other properties in Washington state, it could be much more lucrative.

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. 

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. 

But when design elements don't cost the earth and can stand up to the rigors of renting, of course there's a place for design, a very welcome one, because it will set apart your units from others that are renting for a similar price.Keep your eye on the ball.

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.