A few things weren't done: windows were supposed to be caulked, the front hand rail was supposed to be secured so it didn't wobble, the two vacant rentals were not broom ready and were a gross mess, etc.I was ignorant to the fact that I needed to verify repairs were completed properly prior to closing.

You pay $2500 to verify a septic that would cost $5000 to fully replace is fine. 

Verify that the 12k you think you need to spend, you really need to spend.I way overestimated what I needed to do to get my first rental move-in ready.Also, why so fast to use a cash out refinance?

Soft guess would put you around 12 percent and 2 points on a verified ARV deal right for a first-time flipper.

Hey Emily -Sometimes landlords choose to make the qualification bar lower for subtenants since the original tenant is still on the hook financially, but at a minimum you should make sure the subtenant has a background check and a verified identity. 

Conforming loans (30 yr fixed rate, fannie or freddie) are going to be very cheap right now, and assuming you qualify to borrow (good credit score and verifiable income) that could be a great route if you goal is to fix them up and get them rented. 

You can verify that with any inflation calculator.

For example, if the lien in second position foreclosed you are buying subject to the first lien...you have to know how to verify all this information.I would find something in your area that needs maybe a minor rehab that you can BRRRR or house hack to start with to minimize your risk. 

I have no way of verifying that they were indeed presented other than taking the listing agents word for it. 

Now I have a call into the city inspectors office to verify the permit was pulled and it passed inspection.Thank you everyone who has replied.