After negotiations, the seller just submitted his final over.Heres the deal:$154,900 purchase price and seller agreed to cover all closing costs.Monthly expensesMortgage: $840Taxes: $50Insurance: $225Flood insurance: $60Vacancy of 5%: $107Cap Ex: $172Total monthly expenses: $1454All 4 units generate $21503 units rented out with me in the 4th generate $16251st year cashflow: $171/monthAfter I move out and can rent out the 4th unit cashflow: $696/monthWhat do you guys think?

Find an agent in your area who is an investor and they can also give you some great tips on how to proceed. continue to go to meetups in your area when you have the time.

I’m guessing the plan might be to use the proceeds from the flip to payoff the loan but the lender won’t count that.

It doesn’t appear like you are making the necessary deductions for taxes, insurance, maintenance, CapEx, vacancies, and property management.

The original plan was for the tenant's side to pay 100% of the mortgage / taxes / insurance / PMI, while I cover trash and water for both sides. 

- Regarding liability, definitely consult an attorney and or insurance agent regarding the type of coverage you need.

It's not that hard, but if you've never done it and are nervous, it's not a bad idea to hire a realtor to walk you through it.2) You pay a title company to research the title and get title insurance, same as if you used a realtor.3) Not really - but like you said, guidance and knowledge are worth a lot.

Unless the tenant vandalized the property your rental insurance pays for damages from such instance.

Is there insurance?

There are some HOA's out there that will only allow a certain percentage of units to be rented out and may have some other restrictions in the CC&R's.As for your question, the "best" way of doing something in real estate is typically subjective, but having a HELOC payment, in addition to the mortgage, taxes, insurance, and HOA dues, just increases the chances of having a less profitable property or one that may not cash flow at all.