On a similar note, lower-income people aren't necessarily that bad to deal with.

You can not expect to successfully operate your business without knowing the rules.Keep in mind lower end rentals will be labour intensive to manage.

As it relates to flipping, how do I protect myself from a buyer who may want to cut me out of the deal so that he/she can take over the property for a lower price?  

@Matt Boyle days on market are typically less in IN just cause the market is a little smaller and as far as rentals go it shows a higher profit cause of taxes being lower. 

As I have less than a month at this point to refinance and not pay the extension, should I keep looking for private money or lenders with high upfront points and chase the higher 75%-80% LTV, or pay the extension fees and cash out at 70% LTV with fewer fees and lower interest rates? 

You could lower rent to fill a vacancy only to discover it is someone that suddenly can't pay rent (lower quality tenant).  

Just like what Johnson said, the house split into two 1/1 units, upper and lower.  

The rent can compensate depreciation.With a median annual salary of $51000, rents lower than $1400 are affordable for the majority of the US population.

It is a higher end rental at $1,500.00 per month so I don't want to paint it all one color like I might with lower priced rentals.

The tax is meant to level the playing field so we do not have tax exempt entities driving taxpaying businesses right out of business.A flip is a transaction where the real property is purchased with the intent of being resold.