Here are the details:Single family, Purchase price $25kRehab costs $23kARV $75kEstimated profit for flip is $10k (13.5% of ARV), or monthly rent is $800/monthI would like to make a definitive decision upfront because the improvements/scope of work will vary slightly depending on if this will be a flip or rental. 

I needed to tap into some of the equity created from the appreciation for improvements.  

Do you have cash partner to buy and improve?

Due to the size and zoning, it seems a win/win.The house has lots of issues and is just 1600 square feet, and the potential for income is of course better by improving the site.I'm hoping to tap into knowledge on this site.  

I have learned and improved from every deal i have made.

But it should NOT be commonplace.Look for 2.5-3x rent. no evictions. no felonies. decent history of paying their bills. no owed money to utility companies.If the tenant pool you are getting for your particular rental is not attracting tenants that meet those standards then you need to improve the property or lower the rent, or both.That will open the tenant pool up wider and allow you your "pick of the litter"

I purchased my home almost three years ago and the market has just begun to improve within the past year.  

(read a story) HOA book says Buildings and improvement in good order and repair, Also since the wall is brick and ties into 2 different properties, whats the deal?

We are always improving add on and complicating our plans. 

Knowing why would greatly improve my odds in negotiation.