Before you close or elect not to close, I would encourage you to talk with your lender and also talk with a trusted advisor to determine if all the itemized costs on the closing statement are typical. 

does not look like tihs is a deal. what makes you encouraged by it?

It is standard practice and component level depreciation is encouraged by the IRS.Though it is very important to track you time as you go along.

Selling and repositioning can absolutely work, but I’d encourage you to model the after-tax proceeds first, because what looks like a good trade on equity can backfire once Uncle Sam takes his cut.

Hey Min, thanks for the encouragement!

Typically, investors like using them for buy and holds and for the cash flow (not necessarily flips), but I would encourage you to find investors and investor friendly agents in your area to see where your time and money would best be used. 

Since you mentioned Cleveland, I’d also encourage you to take a look at Columbus, Ohio—very similar affordability but with stronger long-term fundamentals like rapid population growth, big employers moving in (Intel, Amazon, Google, Honda, Microsoft, etc.), and still plenty of properties in the $120–180K range that hit the 1% rule and cash flow with professional management.

Thanks so much for the encouragement!

Any guidance, tips, or just words of encouragement are greatly appreciated!

It's really encouraging to hear from someone in the lending world that this is a smart approach.I'd love to take you up on that offer to chat sometime.