This acronym stands for Buy, Rehab, Rent, Refinance, and Repeat.

Non-recommended) do the Cost Seg.

Most cost segregation firms will provide a free cost/benefit analysis quote to help you determine if the tax benefits from the study will outweigh the costs.

Since you know what you need to buy it at and an average rehab cost, I would say $50-70k for a cosmetic flip, set the ARV based on the sample you choose and doing comps and ask them if they would invest in a deal similar to this. 

.- Expected renovation costs $1MM.

A little more info, I am doing a full cosmetic rehab on one of the units and a lighter one on the other but I am assuming if I am going to split the utilities I should do that prior to any rehab. 

This allowed our partner, Jamari Sprueil, to move forward without any upfront costs.

From there we identify properties that could have some potential and if you are interesting in diving deeper, 1) we do a thorough video walkthrough to give you a realistic look of the property, 2) we give a ballpark estimate of rehab costs (we do 40 a year with our GCs o we will get pretty close), 3) we talk through market rent with our property management team, ARV, and potential highest and best use.Ideally you find great investor agents who know their market really well and have a network of resources to provide you with enough confidence to take reasonable action. 

There were a lot of costs that we didn't expect like the plumbing had to be completely redone.

I've done a few deals where the bank offered purchase + rehab funding up to 75% ARV, and then it converts automatically to a normal mortgage loan at the end of the rehab.