@John BrennanYour plan sound reasonable.

We had to enter in holding costs, holding time (time value of the money), ARVs, rehab costs, a contingency reserve (a little extra to cover unforseen stuff), a reasonable profit margin, etc to get to a "Strike Price" as we call it.

I want to earn my clients business and if for some reason they decide the relationship isn't working then they should walk away (but don't leave your agent high and dry haha).Commission is completely negotiable.

Likely the reason it cash flows on paper is due to a very large construction component that you might be underestimating.

The only reason we don't qualify for traditional lending is because I took some time off to help my terminally ill father, and my husband has been in a commission-based role for less than a year (the lender said you need 2 years of history for that).

That way you can be reasonably sure that appreciation would continue or at least be relatively steady in the event of a downturn. 

My current W-2 and rental income(4 duplexes in my name) have me at about 35%DTI, I am about to add another multi-fam property and it would bump my DTI to 46% even though it cash flows $2000...Do people simply start buying in LLCs(DSCR) at this point for this reason? 

It's the same skill set but the financial returns and community impact are exponentially greater for everyone.There’s no reason that we can’t and shouldn’t be the ones revitalizing our communities instead of outsiders OR worse nobody at all.There are less opportunities in smaller towns and who is in the best position to truly understand the needs of the community?

The main house(first and second floor) is in reasonably good shape for a home of this era - most of the original woodwork, flooring and tiling looks good.

Or you could decide that you're going to hang in there for family/legacy reasons, and keep raising the rent whenever the market supports... and whenever you turn over a set of tenants.