@Lydia T.  

Can I get in trouble for simply trying to work with the homeowner in this position?

What might be some ways I can protect myself so I don't pay a high price for simply investing at the wrong time?

My house in the same county is worth about $290k with $1100 in annual property taxes.I have passed on a number of properties because of the tax implication after converting them to rental properties, particularly in Columbia, SC where dealing with City & county taxes both at the non-homestead higher tax rate simply murders cash flow.

I mis-spoke, I was simply try to say that an investor can borrow from their own sources to get the benefits of leverage without having to cosign a loan for a larger amount that will negatively impact their net worth.

I would 't use a percentage to calculate repairs.

Do you remember T-Mobiles favorite five?

@Jeevs Pothen      Simply search the Bigger Pockets website.

If it were me in the same position as you, I'd keep it as a rental, $10k in equity isn't enough t make me want to sell, I couldn't reinvest that in anything I'd get too excited about without throwing in some more money. 

I am not looking to act as an agent for anyone else, meaning, this isn't going to be my full time job, the license is simply to represent myself and my investment company in our purchases and sales.