You need the backup option in case the mid-term rental market changes.Minimizing turn costs and downtime is critical.

Quote from @Dylan Webb: Have you talked to a lender to see what it would cost you?

I have been in Milwaukee WI for quite a while as investing in my backyard in NY is cost prohibitive. good luck on your journey!!!! 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Of course, I had to make additional assumptions about the cost of property taxes, insurance etc. 

You have to include the cost of your time and the work, especially on a "scary house" is daunting indeed. 

Luckily I have a local team that is incredible at responding and was able to replace the blower motor at a nominal cost.

Attorneys  dont cost, they pay. 

Make sure your rehab is "renter" cost rehab. etc. 

I am not familiar with any HML on a fix and flip that would not want an appraisal as well as an estimate of costs.