Probably need to allocate some of your $100k example purchase price to land which isn't depreciable or amortizable."

At this point, the balance of the loan becomes a loss.The reason this is rare (though it does happen) is because if someone is more than a year behind on their property tax, they probably haven't been paying their mortgage either.

If there is some larger projects that are not a part of your $20,000 rehab budget, then thats probably right. 

For smaller properties, your PM is, probably, not going to be the best and brightest especially if they've been in the same position for 10 years. 

My husband is very risk averse and I think we'll probably be more "slow and steady" than high risk quick climbers.

You and your partner turned a profit but probably more importantly learned a ton that will likely be applied to future opportunities. 

If not, like Megan said above, its probably better to sell and invest the money towards an intentional investment property.Good luck!

I've listened to tons of BP podcasts in the last few weeks, probably 40+ hours while I walk my dog each day :) And I've pored over the Beginner's Guide as well as several books in @Brandon Turner's recommended list - "Long Distance Real Estate Investing" by @David Greene is probably my favorite.

Fed rate will probably be hiked up by another 1.25% by then assuming current market conditions continue. 

It not impossible but understand there are dozens if not hundreds of other flippers out there who can estimate rehab and ARV just by looking at pictures and if they haven't already paid cash for the house, than it's probably not a good deal.