We typically use the following allowances:Revenue:     Vacancy   8 - 10% (even though the vacancy in our areas is running from 4 - 6%).Operating Expenses:Maintenance and repar:  10% (of effective gross revenue)Property Management:   7 - 10% (of effective gross revenue)Reserves:CAPEx reserve:    8 - 10% depending on the age and condition of the property and its major systems.

The color shows the Market Health Index (Green - 10; Red - 1), and the size of the circle shows the Market Price To Rent ratio.  

No worry about that lien.I think what Adrien is referring to is an IRS lien as opposed to a property tax lien which is what I assume you are talking about.I get the sense you are new and don't know how to proceed regardless of the lien. so in simple termsEvaluate the property, how  much is it worth in it's current condition?

According to HUD they did not find any health risk outside of some head aches, throat irritation and the like.The best way to do a preliminary check is to pull  out an outlet and look at the ground wire.  

I should note that unless the home is in really good condition, repair costs will exceed $5k.

As soon as the property is in livable condition you can then rate and term the HML without any seasoning requirements as long as the LTV is supported.

Failed to maintain exterior walls of a building or structure from holes, breaks, loose, or rotting boards or timbers or any other conditions which might admit rain or dampness to the walls2.

What is the current condition ?

I live in a very rural area north of Asheville, NC which does not have much going on as far as real estate movement so I’m looking at other areas.Asheville is hot right now and has set record sales/prices for 2015.This has put the little inventory that is available out of my price range.Asheville would be my long term goal.According to Zillow (which I’m not sure how accurate it is) market health index for Asheville is 9.4/10.Other areas I’m considering are Greenville, SC (market health index 7.8/10 ) and Johnson City, TN (index of 5.9/10), both with more inventory in my price range.Asheville is 35 minutes from my house, Greenville 2 hours, and Johnson City 1 hour.I have made contact with a realtor in the Greenville area and that area really looks like it has potential.I am a Nurse and my wife is a Physical Therapist so we have W2 income and would not need to live off flipping.I also have 3 days off a week to manage rehabs, plus downtime at work for research/studying markets.

Depending on location, foreclosure time frame, market values, and condition of the property, you can often pick up NPN’s and control the underlying real estate at a steep discount.