What are your thoughts on this statement: " getting the previous owner to keep the insurance on the property in his name to conceal the change in ownership is arguably conspiracy (two or more persons), mail fraud (something related to the insurance will go through the mail either from you or to you), concealment of a material fact, and false statement (to the insurance company about who is the current owner).

What are the taxes, insurance, etc.Look at price per sq. ft. / rent per sq. ft. / median household income / median house price for this community, not the entire city.It is much more difficult to "flip" the house in today's market due to the lending crunch so buyers are fewer and further between.If you can get enough rent to positively cash flow the home, rent it for at least a year.

I originally considered buying one of these properties as a rental, they rent fro around 1100-1200/mo, but after reading about the operating expenses it doesnt seem like I would make any money, maybe just cut even ($650 for mortgage/insurance/taxes, + $600 for expenses is a -50 monthly cash flow).

A preforeclosure sale [short sale] involves the sale of the property by the borrower to a third party for less than the amount owed to satisfy the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer.

this includes insurances, taxes, interest, etc.

Insurance premiums run $766 a year.Gross rents, with a 10% vacancy rate, would be $5,076.

Get title insurance, title search, and properly recorded documents.

Better off having an insurance policy built in, just in case.

Get multiple contractors to come out and let them know that you are having a couple of recommended contractors getting estimates for you.Remember the lowest bid isn't always the best.Many times after you have the written estimates in hand you can go back to the one you liked the best and ask them if they will match the other guys price.You also want to make sure they have insurance and are licensed.

Lets say replacement value is $150,000This puts taxes at 19% of rent and insurance at 16.6%.