The answer to all your question is yes. except the last one which is answered in the link I provided.

From what I've learned, because the house wasn't in service for all of 2012 (except for the last two weeks), I should take the fix up costs, my fees at closing, utilities, and insurance and capitalize these.

Even if you figure one out, many lenders don't know and/or don't care about the exceptions, like being able to obtain a second FHA or rules for more than 4 mortgages, etc.

All of your tips are a great help except for Bandit signs.

I guess I can do it that way with the exception of the one she's currently living in.

Property will ALWAYS be free and clear except for lenders Note.

I've never used them except to kick the tires.

As she said, you are letting your contractor control you and your project -- that's not good for anyone (except maybe him).

There are exceptions for students getting out of college and working in thier field of study, military, but the loan to value will be lower too, no PMI.

You generally won't achieve 2% on houses north of $50,000 except in some war zones and distressed regions.50% guide simply states that 50% of your gross rents will go to expenses over the life of the rental, of the remaining 50% take out debt service then you have your income.Rent $1600, means $800 a month will be eaten up in expenses, capital, maintenance, insurance, legal, accounting, utilities etc.If the area isn't too bad (no bars over windows, you feel safe walking there) it seems pretty decent to me, then again I am comparing that to whatever you can get in SoCal right now.Andrew