Is this understanding correct?     

Am I reading everything correct? 

@Samir Shahani your notion is correct - I don't know where there idea came from to correlate repairs and maintenance to rent - if anything they have a somewhat inverse correlation.Repairs and maintenance depend on two things - replacement value of the property and age.A property is a list of systems: plumbing, electrical, windows, roof, driveway etc - and every one has a useful design life span.

Well initially doesn't look too bad be careful often the numbers are not correctly reported do your due diligence!

Make sure as an investor you understand what the horizon of the investment is and if the hold time is projected or that has been outlined specifically in the subscription documents.In my experience an operator is not going to "lock" themselves into a  time period to sell as it would open up significant risk if the market were to correct in that timeline. 

Reach in and grab the right tool, the correct strategy, and get to work.

@Teri S. ... and I could still have her move it into an LLC with no issues, correct? 

I could easily walk away with 100K in profit afterwards.My issue is, if I sell it, I'm going to get hit with a tax bill unless I dump the money into a new home, correct?

@Rhett Tullis, the lender in their inspection identified some issues that need to be corrected within the first year - funds to complete those put into escrow. 

Is this considered a market correction?