Anyone familiar if federal income tax has already been factored into the deal or does this need taken off of the profit amount given? 

Time has been a factor as the market is pretty hot in the Milwaukee area yet.

Other related reasons include: 1) current mortgage rates mean most buyers are able to purchase a reasonable 3/2 SFH or nice townhome in Oviedo for the same (or less) money than the rate you would need to charge to make the numbers work; 2) the community is surrounded by luxury apartment rentals; and 3) not convinced there is enough of a 'pull' factor - the community is still relatively new.  

I am also very concerned with environmental factors inside the home due to the known water damage.

You have to factor in expenses as well (Insurance, management, taxes, and reserves), if that is true cash flow than that is a crazy good deal for him (36% CoC return)! 

.· Another topic to touch on for those operating multifamily properties is the vacancy factor.

(aka the "happiness factor") - As I understand it, a second home loan is possible at 10% down as long as I use the unit at least 14 days a year, I can claim the income, but I cannot use the income potential to qualify for the loan? 

@Sara BlatzMany factors.

I know some things can only be learned with real-world experience and at some point, I will need to take a leap of faith and purchase while venturing outside of my comfort zone.I'm sure this will depend on many factors, but what concepts do you think are critical for a new investor to understand.

I suppose you'll need to factor in what an average fee will look like for the deals you intend to work.