Private funding from a relative may provide flexible terms and reduced financial risk, but formal agreements are necessary, and interest paid is deductible for you but taxable for them.Traditional investment property loans offer stability and tax benefits like deductible interest and property taxes but require larger down payments.

Return of 37.5 after five years, closer to 40% with rent increases.  

It is very nice with above average amenities and priced just $500 over what it would rent for as a non-furnished 12 month lease rental (I have two of those nearby so am very familiar with comps).

Install low profile LED lights or wall sconces.If this is an investment property you need to be thinking about returns.

Analyzing the neighborhood and the asset condition is the key to projecting accurate returns. 

Non paying tenants(as a newbie I did no screening), dead tenants, Silly fines from the city for nothing, attempted robberies where I ended up with the cops pulled guns on me. 30 recently released convicts as neighbors for a while, a jacked up 7' tall transvestite call girl/drug dealer was my least favorite neighbor.

Target neighborhoods like Brewerytown, Kensington, and Point Breeze, where demand and ARV potential are currently strong.Your skills in renovations will give you a significant edge in controlling costs and boosting returns.

The short version is that you must have a  Private Placement Memorandum (PPM) to show your investors and you must decide upfront if you will only accept accredited investors or if you will allow investment from non-accredited investors.  

The $1,500 net cash flow you mentioned represents a tightened rental return that could provide consistent passive income.

But just because it is 4 or 5 bedrooms doesn't mean diminishing returns.