PV=CostsIn your case, if you want an 18% return, don't invest in anything with less than an 18% IRR. 

This is different than an investment.

I'm considering converting to an S-Corp rather than an LLC to minimize this tax and reporting burden.

Otherwise, if you kept the money in the company in order to do more and more deals, the tax rate of a corporation was less than an individual?

Also, the servicer cannot start the foreclosure process if a loss mitigation application is pending.If you submit a complete loss mitigation application to your mortgage servicer after the foreclosure has started, but more than 37 days before a foreclosure sale, the servicer must stop the foreclosure process until: the servicer informs you that you are not eligible for any loss mitigation option (and any appeal you make has been exhausted)you reject the workout option that the servicer offers to you, oryou accept a workout, but fail to comply with the terms of the deal (such as not making payments during a trial modification).Now...that's the law, but let's talk about reality.  

@Juliet BanksYou are in NC so read the statute http://www.ncga.state.nc.us/EnactedLegislation/Sta...I recommend you give a lease and a ROFR (right of first refusal) as if you give a lease and an option, you must deal with the state above.Search "Brian Gibbons Why a ROFR is better than an Option" on BP

A mortgage helper any which way you slice it can add more value than an additional bathroom depending on the area.  

You should be able to get an owner occupied type loan which is better than an investment loan since you will be living there.

That said, you'd probably still have people that would choose the (net) $545K because they can get more than an 11% cash-on-cash return.

Buying and renovative a $800K home might not be achingly more difficult than an $80K home but downpayment, holding costs, etc. are astronomically higher.