She has easily verified employment at a large university near by.

.#2 is easily enough done.  

Hi @Tarcizio Goncalves,If you're looking for bank owned properties in MA only and don't want a pay a fee to sites like those, do a google search for buybankreo and just click on the REO Property Search link on the menu. that will let you auto filter to "specifically" all of the bank owned & short sale listings in the MLS for whatever area you're looking for in MA.

The house ARV would sell for $350,000 easily based on comps and doing my due diligence the house can easily sell in less than 120 days.

I have many connections around this area and could easily pick up a couple properties in excellent areas that could net $500/m. 

Is it in a desirable/easily rentable location?

The questionable cost factors are always in what you renovate, labor and materials.Two numbers you can get easily enough.

By establishing that a debt is beyond the Statute of Limitations, John Doe can quickly and easily dismiss any suit his lender may file to enforce collection of the debt. 

I have only one other mortgage on a rental property which rent easily covers its mortgage.

Whats your thought.In the event of an audit, a talented auditor would follow the paper trail and would be able to easily see that you were not entitled to claim this as mortgage interest.