Nonetheless, this may just be a necessary correction of course given the black swan event proceeding the GFC causing unrealistic unexpections. 

Too many variables can go wrong and I have found using these numbers helps ensure a good and successful flip even if something big and unexpected comes up, which almost always does.What is your main source of leads?

I am a more conservative investor, so I would budget 40% expenses which gives a buffer for unexpected issues and eases my mind :)

However, you seem to be the resident lender and moderator here on BP, so your comment is not unexpected.  

A good operating agreement will discuss what happens if you both need to contribute more money to the business (what if in 3 years you need a new roof for your investment property, but the LLC does not have enough money in it to cover it); what happens if only one of your is able to contribute money to the LLC for an unexpected situation; what happens if you have a serious disagreement about the direction of your investment (what if one of you wants to sell the rental but the other wants keep it); what happens if one of your expectedly passes and the other is now partnered with the spouse or kids of your friend; etc.I know you would rather save the money (who wouldn't), but it is a deductible business expense and may save you a lot of headaches later.

Hi all,I'm working through a situation in which my tenants unexpectedly moved out while they still owe 1.5 months rent ($2625).

Next time it will be job loss, or unexpected car break down, or job loss, or on and on and on.The REAL question is are you going to manage your business in a professional manner by following and enforcing the terms of your lease or are you going to fall for every sob story a tenant gives you as an excuse for violating the terms of their lease?  

Just out of curiosity what were some of your lessons learned as far as unexpected setbacks ultimately delaying you from listing the property for 5 months?

I would be delighted to have a good tenant that pays on time and adds value to my property out of his own pocket lol 

I have access to about 20k in reserves for any unexpected issues. i was thinking of using private money to fund the rehab and refinance the property.