Do I involve  lawyer?

This has slowed up the process a tad, but we are starting off slow and steady, and not putting any extra stress/risk on our business.  

Also remember, there is no reward from not obtaining risk, so don't be scared to take MEASURABLE risk.

I would not have bought this to be a rental property, since the numbers don't make sense.The risk of renting it out is that the house condition continues to worsen faster than we can afford to fix it, or yet more problems are found.  

I've been browsing the forums for months and am now ready to get myself involved with this awesome community!

It's an option that can be used to get into the business, but if you should do it can only be determined by you and your husband, possibly with the help of a CPA or similar professional. 20-45k is generally enough to get started, depending on what you're getting into and where you are.If you are going to be risking your primary residence with a HELOC, my suggestion is that you make sure you could handle the possibility of that money going into a failing investment and getting lost.

If the deal makes money with all the expenses involved, then its a good deal.

I understand how slow GOV involvement could be, but it sounds like a good option to use the cash for rehab as well as the sale.

They require more babysitting and it's hard to find a competent property manager that works in the rough areas because the management needs are more involved and the rents are cheaper, meaning less of a management fee on a percentage of rent basis.

Hedging my risk!