This will allow you to use the funds from your sale to purchase a more expensive property while avoiding paying capital gains tax on your sale profits.Best of luck to you and CONGRATULATIONS on the addition to your family!

I would steer clear of hard and fast rules like the 70% rule in general, they are too broad and don't work in a lot of markets in Southern California for example there is no way you are getting a house at 70% ARV -expenses unless it is off market and you are comfortable taking advantage of someone, or maybe raw land. 

And the ratio of rent to mortgage payment gets worse as you get into more expensive housing, I.e. $200K houses don’t rent for double $100K houses.

Been to court once, it's expensive. 

I opted to not turn on the water since no one is living there and it’s expensive for that neighborhood to have water turned on.

I think a barn door would be too expensive / out of style. 6 panel bi-folds look like they would fit with everything else. 

Would be cash flowing roughly 400$ a month after all expenses.

Morbid, but much of the total expense can depend on how far the fluids seeped into surrounding areas.

With a monthly income of $3000 before expenses, and a cash flow of $1350 after expenses (including $308 for the HOA) shouldn't I believe it to be a good deal?

No sense putting new carpet down that will get trashed, and replacing with new hardwood treads is very expensive (worth it for a flip, not a rental).