Oh yeah, there's that pesky risk factor which means you may end up with $0.    

If you switched sides in your scenario and were the person lending the money, would you feel comfortable with all factors being considered?

You aren't factoring in property management which would be another $260.  

The answer to this question depends on a number of factors that are specific to your situation.

So I am self employed as a consultant in a business other than real estate (I also have some rental properties that I own and operate but I don't believe they are relevant to this question).  I bring in a decent reven...

If you move a sewer stack you'll have roof repairs to factor in as well. 

As long as you factor the higher interest rates (they are short term of course) into your initial calcs before you close the house.

But I also know REO's give preferential treatment to actual end users of their properties.

I've spoken to my CPA and -- cutting to the chase and factoring in passive losses, etc -- if I were to 1031 it into different investments, I'd need to spend about $100K of equity against about $300K of debit (for a total of $400K) in order to qualify for a "like" property and avoid capital gains.What I'm looking for are thoughts on the best strategies moving forward. 

But the rehabs are well done, we average 3 to 5 maintenance calls per year, per unit.So i believe it subject to the maintenance, rehab/condition of the asset, background check of tenant, and relationship with the tenant.I believe the tenants treatment of the house is typically a reflection of the owners care of the property.