(I don't know, I didn't work it out myself)...Other than the neighborhood concern that has already been addressed, the main reason I would be against your quoted Pro Forma numbers is that at the end of the day, you have only turned your initial equity of $34k into a (hoped for) $41k equity, which is not enough of an increase to be able to continue a "Buy, Rehab, Rent, Refinance, Repeat" strategy.

One of my biggest issues right now is understanding the cost of the renovation which will determine my returns in my pro forma.

Be patient, form a plan and put that plan into action.

Potential NOI is $229,445/yr OR $19,120/moBased on the pro forma, the potential re-sale price is around $1m....that's 23% ROI.

I am thinking I would form a domestic, US LLC and raise capital for the deal through that LLC.

Hello there, my name is Darwin and I will be relocating to the Capitol Region (again) and would like to form a team with contractors, realtors, brokers and investors.

My name is Wendy I've been very interested in real estate for a very long time but I was always too scared to do anything I come form a long line of "oh no what if it doesn't work and you lose your money" family.

I have run the numbers via Rental Property Calculator on BP and here they are:Purchase Price: $460,000.00Monthly Income:$4,200.00Monthly Expenses:$3,593.20Monthly Cashflow:$606.80Pro Forma Cap Rate:5.93%NOI:$27,952.00Total Cash Needed:$126,000.00Cash on Cash ROI:5.78%Purchase Cap Rate:6.08%Total Monthly operating expenses:Vacancy:$294.00Repairs:$210.00Water:$100.00Sewage:$100.00Insurance:$150.00P&I:$1,722.53Property Taxes:$916.67Misc:$100.00Please let me know if I am crazy to do this deal. 

Of course the broker's pro-forma will always paint a rosy picture so I ran the numbers & preliminarily it seemed like it could be a good possibility- built in some healthy reserves and were looking at a 6.5% cash ROI yr. 1. 

If in my area, I can send you pro forma statements on vacation homes that will give you a good idea of the income that can be generated.