Now you need to figure out how to find deals and pay for them.

Her sister has agreed to us paying out her portion of the equity and having us use this as a rental. 

Hi guys, so if i use my business credit cards with a liquidator to turn credit card into cash and i use that money to invest with, when i go to make payments to pay back my credit cards is that money i use to repay the cards taxable???

Matthew,Yes, you would want to use those funds and do a 1031 exchange to avoid paying taxes on the cash or (boot) from the sale of the home. 

Your monthly mortgage will be about 2,000, which won't pay the bills as a long term rental.

Negatives are that there is an additional cost for me and if the tenant doesn't pay the water bill, i would end up with a potentially large bill at some point. 

My understanding is that it is me paying out of pocket what the previous owner has put into the house.

If our agent pays him via checks and bills us at closing, does this have any +ve or -ve impact on the taxes? 

When we were the lender we would foreclose on the property or have the HOA buyer pay us off.

And we pay them direct from rehab draws on my loans.6.