If the deal is for $140k all cash (and you get $40k right back), you're probably OK. but any half-wit loan officer the tenant uses will see right through what you did, which is to artificially bump up the market history of the property to influence the appraisal and mortgage size the tenant is applying for.

Im trying to learn as much about all the various aspects of investment, as we live in a one size does not fit all world now, adaptability and creativity are key to me, in understanding what are the best ways to handle a real estate investment opportunity.Im here to learn and network with other investors so I can take advantage of the wealth of knowledge and turn it into a sustainable business. 

I would recommend solid tenant screening. 

I think that is quite acceptable as a pre screening.    

Over a large sample size of properties you may be able to come up with percentages that work...but over any 1 property there is no percentage that is going to be accurate. 

Do not let them hold over no matter what.Finally, in the future, screen your tenants better. 

Also be aware of the square footage of the properties, as there can be a pretty large variance...also be aware of the styles as for instance a victorian rowhouse will likely have a higher arv than a federal style row house.There are other parts of Frederick you could probably flip in, but the smaller size of these downtown rowhouses really helps to cap your repair expenses since there is only so much you can spend in those small things.

Baseboards trim and doors (prints around door handles is gross), ledges, Windows screens & frames, sliding door tracks, etc. caulk everything fresh clean lines pop, fresh paint, patch all holes.

As long as you screen section 8 tenants well there is no reason not to rent to them.

And what size is best and why.?