Really look and see what and where you want to go with wealth.To me,Filps are quick riches and Buy/Hols are long wealth-buliders.I perfer the buy/hold because of the benefits to eliminating or reducing my W-2 income 

I expect this would significantly delay or reduce my ability to invest in real estate for at least 5 years or so.I don't expect the cash flows (in the form of increased annual salary) from an MBA program to net positive for at least a decade - and I believe that is far too long a payback period for an investment that could have such a huge impact on my daily life and happiness.Reason 2 - The degree limits my thinking and narrows my career of choice.It was relatively easy for me as a young kid with just an undergraduate degree to make the decision to quit my cushy finance gig and come work here at BiggerPockets for @Joshua Dorkin .  

My question is: do I pay all the property taxes now and then sell the note or sell the note at a reduced price and let buyer pay taxes?

The fact that the one separated system is paid for by the tenant leads me to think I can pass along the cost, even if I have to reduce rent a bit such that I'm partially passing along the cost. 

I agree with Pierce as to his appraisal techniques, but your negotiation skills are not a value that reduces a lender's risk, if you could buy it at that price does that mean that no one else could buy it at that price if it went to a foreclosure auction?

The only thing I'm bringing to the table is my next monthly mortgage payment (PITI), which is a tad lower because of the reduced rate they're also getting me. 

Do you know of any way to get around or reduce the surrender charges ?

. $130/monthCapex $270/monthVacancy $130/monthGas $85/monthWater/Trash $160/monthFinancing: 20% down at 4.65% for 30 years PI $700/month24% COC Electricity is tenant paid and the plan is reduce rents to 610 and pass the other utilities on to the tenants as well.

From a future DTI standpoint I don't believe that you can use the income generated (by roommates) in order to reduce your ratio, even if you have two years of tax history.

HUD  had just reduced the price and it was a good deal if the house didn't need a lot of work.The inspection period was really a joke.