Since I have the ability to renovate, my best bet is to look for properties that need repair.

It may not be in-line with what your expectations are.

You can still get it through surplus lines or reinsurance.

Please that I might have mis-spelled some of those names, the bottom line is to be in well known city. 

In general when cutting trees or roots never cut more than 1/3 of the total tree line at one time.

Does this seem out of line or simply outrageous compared to the size of the loan?

Meeting other investors and discovering how I can be of value to them is a great path to success for me and I bet it will be for you. 

I have been approached by a couple friends and family members who would like to invest in the business.I currently have two people who would like to invest 100k each in a passive setting in exchange for a dividend or something along those lines.

I think I'm in line and understand all you are saying, but one last question.purchase price was $72K + $40K rehab = $112K all in...If sold for $200K then the gain(profit) is $88Kdo I pay taxes on the$88K or on the entire $200K.

I’ve found a commercial lender that will give me a line of credit on 80% of the combined equity of the properties.