Depending upon what the zoning would allow, do a deep dive into the surrounding area and examine what would be competing properties.

K1 is calculated differently than W2 but you can still get a Fannie Mae / Freddie Mac loan depending on the debt ratio's?

That gentleman I mentioned before says that  finding out who is the broker is the only dependable thing about Loopnet.com. 

The penalty and tax will remain, but there may be other offsetting tax benefits in other areas that will help lower your overall tax bill.Your expenses to fix up the house can either be an immediate expense or a depreciating asset, depending on the facts and circumstances surrounding your "in use" date. 

Percentages vary depending on your strategy but here is generally how I use my excess cash from this portfolio: Say you have extra 1,000 bucks after paying your monthly expenses and putting aside money for reserves: I split it out in the following manner. 1) Additional rainy day fund for CAPEX and repairs. 10% 2) Additional Acquisitions budget 50% 3) Additional Debt paydown 25% 4) Stocks / Bonds/ Pay myself. 15% I definitely prescribe to the pay myself first , and have a more conservative approach when dealing with debt .

Depending on your budget, drive-able might be best but it also depends on your preference.

It all depends on the title company on the sellers side.

Actual trailing 12 PL's that I have seen are not  smooth and on a big turnaround project I am sure the first year will be very up and down from month to month depending on lease expiration and the renovation schedule. 

It depends on what you are looking for.

Depends what kind of work you want to do, and what interests you.