Let's say you have $100000 available and you buy ONE investment property that cash flows $1000 after taxes insurance and management.

I suggest you look at local tax rate, insurance carefully, utilities are low if you have to foot the bill. 

Cost is 285k im not sure what the closing cost will be im estimating the followingPurchase price 285kClosing cost 6kRehab [email protected]% conventional Down payment 5% 15kI dont know what rent for the area but i look and see maybe $1400 each unit Im doing $80 for water per month$125 insurance month$200 repairs per month$300 taxes per month$1487 Mortgage $700 plus Cash flow Am i missing anything ?

$1,200 insurance?

Use this excess proceeds to fund your rehab expense.

This could lead to a future event that optionee comes up and buy my property at a stipulated price.Currently, I have heard a few things:- Title company: they say there have been a few transactions after this Option, there should be no issue, but this is not covered by insurance- an unpaid legal advice from a local lawyer: this is a defected title, should cancel the purchase- Realtor: we will try to remove this, but this is not an important issue- Realtor friends: No.

Is the insurance price correct?

These include loan payments (if you had them), taxes, insurance, HOA fees, utilities, etc .. that occur during the Rehab period and up until the property is fully rented.I understand your reasoning for the 60% LTV to gain better cash flow. 

Also I'd like to resolve the minor issue, but it's not pressing.How should I proceed?

For servicing, As for servicing it ranges from $15-95  monthly depending on if it's performing or non performing and whether you elect to have escrowed taxes and insurance.