(Big assumption, I know).I tried to find the Net Op income by applying a 20% vacancy factor, 2014 property taxes was $5,700, estimated maintenance $3,000 and insurance of $1,500.

So, our votes get factored?

And Rehab Costs would be the cost to tear down and construct the new property, including all hard and soft costs that aren't factored into the Fixed Costs.For example, if I have a house that I can tear down and rebuild a 2000 sf property that would sell for $400K; it would cost $100/sf to tear down and rebuild; I'd have $50K in Fixed Costs; and I'd want a 20% profit on the resale price ($80K), my max purchase price for the tear down would be:MPP = $400K - $50K - $80K - $200K = $70KKeep in mind that the rehab costs must account for all of the following:- Site Planning- Zoning Approvals- Utility Installation- Permits/Impact Fees- Environmental Studies- Etc...If these costs aren't factored into the per-square-foot construction costs, you need to factor them in separately. 

In general, the IRS has a number of factors it will examine to determine this. 

if you applied with major bank it takes forever..I have 600k equity..great income..775 score..and wanted 200k heloc and it took 6weeks..large banks with mortgages and helocs can be very frustrating with time, and it will only get worse with different guidelines in the future..good lick

If you want to be an active real estate investor and roll up your sleeves to acquire properties and rehab properties then that's great.On the other hand, if you enjoy investing passively with turnkey rental properties and that will help you fulfill your goals then stick with that.A big factor here is TIME.  

@Leo B.So as a rough guide (cause you'll want to factor in things like depreciation you have to recapture, capital expenses over time, costs of sale etc) if you bought for 400 and sold for 500 then you have 100K in profit.  

TI covers you forever, not just during your ownership, so if a matter arises that was from a previous owner and claims are made against any future owner, your policy covers you in the chain of title.Not obtaining TI exposes you to risks of passing good title to future owners, any claims made during or before your ownership, you'll have to defend.

In my area almost half a condo building is in foreclosure and none can be rented as that's the association restriction.Are you also factoring in:InsuranceProperty managementVacanciesMaintenanceIf you aren't sure of the costs then 10% is a good number to use for pm, vacancy, Maintenance.Plug all those numbers in again and see how it looks.Also you might consider going a little further out for a SFH or multifamily.

It sounds like you got it at a good price too, just make sure the numbers still work after you factor in repairs.Good luck and let us know how we can help!