It generates a partial taxable event but that is something that I imagine you can also use to match up an investor with the right product at the right debt levels.

I would strictly buy based on the 1% rule (many of my properties generate more), calculated after all rental make ready repairs have been made. 

When all is said and done, I would like it to be an income generating property 5 years down the road.As for the concern that I am renting under market , I will have to carry the cost for at least my sons room. 

I am still skeptical about the 850/mo mortgage I recently took out that should generate 1400-1800/mo in rent and that is for a 3200 square foot house which itself costed me less than 140k.

If you buy a rental, you may generate a yearly profit if all goes well, or you may not. 

This will be a Class A property for Baltimore once completed based on the rehab cost you're projecting, you can have Class B or B- property for far less money generating a much better return on your investment.

Make sure your next contractor is licensed and insured, so it will go smoothly too.If you are a big fan of craigslist, or any other lead generation sites, you should not be complaining here, you want to hire unlicensed individuals or any other person who doesn't know how to file taxes, or run a business, just because you want to save money, don't expect get the professionalism or legal way to do it.

.* At this point, you, as potential purchaser, with an exclusive purchasing right, shall have to constitute an earnest money deposit at our agency, within maximum 72 hours from generating the contract.

Easy...and I base this on my market, which could also be considered many midwest markets:1 Buy 10 - $50k cash flowing properties (no these are NOT Class "C" problems) with an average of $800/month Cash flow (with no financing).2 - Hold for 6 months generating about $48,0003 - Find Partners willing to be credit partners on refinancing for 50% of the deals (meaning 50% of the cash flow, equity, depreciation, Cash Out at Refi, etc...)...they would need NO CASH to put in...just their credit.  

We're looking for a few flips to generate some capital and then buy and hold.