A few things to additionally consider costs upfront is the appraisal cost and insurance costs. 

My current tenant had some high debt that came back on his Transunion screen but I decided to move forward with him.

For additional information about this particular type of pipe and/or to learn more about the lawsuit, there is a website available at: http://www.kitecsettlement.com/faq.cfm.

- Aside from the following: Condo fee, tax, home owners insurance, hurricane insurance (is this in addition to home owners insurance)?

Debt on the mortgage is 500k.

I really want to increase my real estate portfolio but debt and credit score are hindrances.

None of those 3 things are factors with a debt service loan.

In this case the city is saying these units are not habitable but also stating that when they are habitable the existing tenants get the unit at their existing rent.In addition if the lawyer is correct, I believe he is incorrect, the LL must also pay for the hotel stay of the tenants during the rehab. 

It's the business debt cycle that is the agenda.

Having an equity partner is VERY different than using capital as debt - and both of you need to realize there is upside AND downside as an equity partner.