The following expenses must be paid at or prior to closing:   (1) Expenses payable by Seller (Seller's Expenses):      (a) Releases of existing liens, including prepayment penalties and recording fees; release of Seller’s loan liability; tax statements or certificates; preparation of deed; one-half of escrow fee; and other expenses payable by Seller under this contract.      

That was before we made the following improvements:New roofNew garage doorInterior walls, ceilings, trim, and doors all repaintedExterior repaintedHomes of similar size and finishes rent for around $1100 per month up to $1200 per month.

It makes no sense, considering they paid for the lead and never followed up.

@Marcin:  My plan scale slowly - purchase one property, 2 the following year, 3 the year after etc. 

On a side note, @Brandon Turner uses a different version of the BRRRR Calc on the following YouTube video I referenced when learning to navigate the calc.

Make sure to follow all the precautions you would for a long term renter.

If you can spend more time, more money and get massive results then you should follow these.Create a website must be PROFESSIONAL have a blog and get someone to write for you add at least 2 posts a monthBrand yourself or your company and give some value it could be FREE EBOOK, VIDEO ADVICE, TIPS, or anythingReach to people as much as possible (STOP THINKING ABOUT LEADS FOR A WHILE) connect with more people show your interest share valuable stuff.Try to use Facebook, twitter, instagram, as well as linkedin gain good number of followers and audience share interesting thingsBuild an email list within your niche that could help you to connect with more business people and investors who trust you.

If you are looking to strictly buy another place, I would probably take the cash out by just putting a loan on it, but if you're looking to pick up some distressed properties, fix them up and put them on a loan(BRRRR strategy), then I think using a HELOC on that existing property would be smart as you can draw and replace the funds essentially as much as you would like to snowball the portfolio.

I will follow up with them after purchase and ask to have an inspector come out to examine property with us.

I would prefer flips and/or rentals, as this is the niche I have decided to follow at this time.