Conservative actual cap rate of 7.5, rising to 8.5% if I can get rents to $620 and $700. 

It is specific as to requirements and procedures for both parties.

All depends upon the buyer and the property type {SFR vs MFU}FIRST, property with tenants in residence have rights to the expiration of the lease.if SFRbuyer *may* wish to occupy -> tenant is disadvantagebuyer *may* wish to rent to other known party -> disadvbuyer *may* wish a turnkey purchase (ie tenants in place) -> major advantageelse if MFUrents < FMR, disadv rents = FMR, advant

If you are working with a local hard money lender they will generally have a local title company that they have done multiple deals with.If making sure there is a reputable title company involved, why then would the HML title company be used instead of one that is neutral between both parties?

For instance- this just came on http://www.trulia.com/property/3223616291-1701-Jac...623k- assuming I am renting for 4k which might be conservative and 5% vacancy, estimates on expenses still puts my rates between 5-7%. 

By the end of March I anticipate my savings to reach 7k (a conservative estimate).

I've looked into RUBS/sub-metering companies, as my preference would be to have a 3rd party handle the billing for utilities (I heard about this on a BP podcast, and it sounded awesome).  

Fifth, they lost the difference between what they lent and what it sells for 3rd party, or through REO if it reverts back so yes, they do suffer losses.

Just have Dorkin rent a 747 and have the next BP convention with a party in the sky.

Alternatively it could meet a economic wall that cannot be ignored and come to a very abrupt stop leaving a lot of folks drowning (just ask some of our neighbours to the south how quickly the party can end).Finally, yes, there is still money to be made, but the approach you outline is more speculation than investing.