Of course, there's no TVM assumption here.  

Cory,You are on the right track with many of your assumptions.  

It also assumes a hard money loan and all the other assumptions I mentioned above.If you paid all cash and decided to hold the property, you would not incur the $3375 finance costs, $5000 realtor fees, $1000 conveyance tax (a relatively minor expense but really local to LA county), $2000 escrow sales fee, and the $950 financing cost.

I will be getting a friend (local appraiser) to give me a confirmation number on my value assumption. 

I can think of no reason that someone would remain inside a unit that could potentially kill them, so the only logical thing for him to do is to vacate the premises.Renters insurance is obtained so that "Loss of use" is covered and the assumption is that the tenant has that or should have obtained a policy.

If you wanted to be conservative you should run the numbers with the assumption that rates may go up or you need to extend your hard money loan another 6-12 months.  

@Jd Martin - I was working with the assumption that I would find a refinance based on the appraised cost.  

Any foundation work is big ticket item, so before making any assumption, take in mind that there is definitely some work to be done, and some work done before and still failing.  

Where's your maintenance assumption from?

I'm making an assumption that you haven't purchased your first property just by how the post reads.This isn't rocket science.