The house you're talking about with the 5,000 sqft is in need of a total rehab. 

The whole idea is to get in "light" - with as little cash out as possible.Purchase price: $80Kdownpayment: 20% ($16K)seller gives you $30K rehab creditCash at closing: $14KOwner 1st mortgage: $64K, interest only, 8% ($426.67/mo)Maybe negotiate to refi in 2 years or 1 year with a one time extension of 12 months with a 1-year advance on mortgage payment ($5,120).With that mortgage payment, and if you can indeed rent both units at $825/mo or $1650/mo total, you will cashflow from the deal even with the 50% rule.I would suggest though that you put the deed in escrow to be sure the owner does not walk out on you and get your downpayment and a renovated property at your expense.

So 60k total.

New Roof, All new Doors, paint, Totally remodeled office, kiosk, Renter's insurance and security system.

Because you're having trouble finding deals, investing some energy into people that already have developed systems and ways of getting you deals could be worth your time, but totally your call!

Total assessment was close to $250K

Once I saw that, I totally changed course and agreed that this was 100% tenant responsibility.

The total gross income from property is $1850.

No loan, all cash.The expenses have been divided by categories (materials, utilities, paid contractors, insurance, other outside services, etc) and listed on the 1120S using TurboTax Business.My question is, how do I determine the Total Assets for Item F of Form 1120S?

I totally agree.