Absolutely the contract must address the back taxes.

So I'll get a cashout in a few months and the home should absolutely appraise for about $75K....maybe a little more...but I'm staying conservative at $75K.

And you're absolutely right, those major capex can really eat up all that prior cash flow.  

If that is an absolute requirement, however, what do you think that the best way to invest is?

They milk the clock and do the absolute minimum.

However, it assumes only 3 months for holding, which is seriously aggressive in some markets just for the sale, and ridiculously optimistic for a newbie and includes absolutely NO contingency for surprises in the rehab.You must...1. 

What this means is that you will give a commission to the agent, generally 3%, for bringing the buyer.My answer would be absolutely yes.  

There is a wealth of information on this site, and the people are absolutely fabulous! 

absolutely not, do not get a realtor involved. call a title company. they do everything that a realtor would do including closing..... only difference is you actually have to use a title company involved even if you add a realtor to the mix.- Title companies are vary familiar with FSBO transactions and typically will take over the transaction and walk both of you through very easily and painlessly. - they will give you both a contract to officiate the sale between the buyer and seller (no need to make one up yourself although i have done so, many free ones available online and if your half decent at contact law it is not that complicated to make it legally binding, your title company would review it  anyway to ensure accuracy.) - they will coordinate with the buyer for appraisals, termite inspections, coordinate with their mortgage lender, earnest deposits, etc. - they will be the primary contact, so after you and the buyer have settled on the price and contact a title company, they do all the rest of the work!

@William Hochstedler  Absolutely, thank you for your input.