Then you apply your tax strategies to arrive at a Net Income/Loss. 

Nothing to do with positive cash flow arriving in your bank account before or during rehab.

The proforma from the seller had 10% vacancy already built in so I used the general rule of thumb of 50% to arrive at that number.

I also seem to recall the mtg was extinguished by a foreclosure of the 1st mtg so I'd guess the City wasn't very happy with the original developer.You are suggesting the city is annoyed with the original developer who came many years before I arrived on the scene; so now they are passing the grudge onto me and my back house? 

Now he could invoice those items in the background and just give you the final total, but if asked for the breakdown and he gives you that you can't beat him up for how he arrived at his number...

Account Closed I think I addressed most of your points and explained how they were incorrect, but could you show me the resources you're using to arrive at this information? 

The only problem is that it can take some time  for owls to arrive.

Guys would call some number and they would answer, set up a "party" at a hotel somewhere, and coordinate a girl to arrive at the same time to meet the guy. 

over the past few years, i have been raising the criteria and an interesting thing happened - i found less section 8 tenants qualifying without a noticeable decrease in qualifying applicants (obviously that could be due to many reasons)Anyways criteria like length of time in current job, length of time in current residence, avg bank balance and more are all criteria that help arrive at a well qualified applicantIf a section 8 applicant meets the criteria, they will likely be a good tenant and have the added benefit of being on section 8In other words, having good criteria avoids bad tenants regardless of their section 8 status

I'm using the below to arrive at my monthly net cash flow number:+Rental Income(-) Vacancy Assumption = 8% of rent(-) Mgmt Fees = 10% of rent(-) Mortgage Interest Expense = 4% rate(-) HOAs = Actual(-) Insurance = 6.8% of annual rent(-) Property Tax = Actual per MLS(-) Repair/Maint = 10% of rent(-) Gardner = $50/mo= Net Rental Income(-) Mortgage Principal Paydown=Net Monthly Cash FlowAny input is very much appreciated.