Properties in high crime areas aren't worth much so you can't buy them for the appreciation factor.

Now that I think of it, another limiting factor to this would be the veterans DTI, correct?

When using the wholesale equation: Max Offer = (ARV*75%) - Repairs, should I also factor in holding costs, transfer costs, closing costs, marketing Ect?

I understand that capital, experience, net worth, and liquidity are all factors for securing investors and financing.

So shouldn't the total ROI be somewhere in the results factoring in the built in equity at purchase of $40K?

Learning and mistakes go on forever so just make sure when you are ready to go.  

That needs to be factored in with the amount of consideration given for the option by the TB.Whether you stay on and manage it as a rental or not depends on whether you are assigning or sandwiching.  

Will hold them either forever or until I need to implement a retirement plan. 

In my mind this would be a top decision making factor if I was interviewing investment realtors.  

Most of us factor 8% to 10% on vacancy.