If you don't close you may get blacklisted....for me that was toooo much riskIf you work with the listing agent on an REO, how to do get into the house to assess repairs and its general state?

you are putting up 655K and getting back gross 26.4k per year , in the surface this is 4%, but actually if your condo assoc decides that they need new windows and hits you with a 12,000 assessment you are screwed.

Buyers are a dime a dozen.

There are dozens of examples of "eco villages," mainly in Europe that have bought into the concepts you are referring to and have tenants flocking to get residence.

Michael H. are the taxes you mentioned ($7934) based on an old (really low) assessed value or is that based on what the new taxes will be for a sale price of $900k?

The mill rate for Trumbull, Connecticut for instance is $35 per $1000 assessed value.

Jokes aside, I am fairly certain that a quick google search will confirm Jonathan Twombly's assessment of mezzanine debt as accurate.

Make sure to look into the financials of the HOA so you don't get surprised with a special assessment. 

I have a lot of equity so for my next rehab I will assess how I'm going to work this.

I looked at probably three dozen rentals at the time and every one was a filthy mess.