It is up to you to choose your profit margin - not a formula.

You make your money when you buy, so you want to buy low enough to have enough margin to cover rehab plus your profit at the end.

You should be seeing some cash-flow if its a 1% deal.If you sell the property now - the gain isin't so greatSales price $85,000Less Commission of $4,000Less Misc Closing costs $2,500Less cost basis of $68,500Gain = $10,000You then have to pay federal income tax(STCG) which is your marginal tax rate.You also have to pay income tax to Indiana of 3.3%I don't know what your marginal tax rate is but you are giving up the cash-flow for maybe $8,000.I would personally keep the property. 

The way I got started is I went out and found a deal that had high value-add(Large margin between acquisition and repair cost and ARV), the value in the deal made it easy to finance, I mentioned to everyone I knew what I was doing and let them know I have a deal I am trying to find a partner for and I found an investor rather easily because of the value in the deal, the deal attracts funding, get yourself a deal and  you will find an investor.

I am buying homes that wouldn't pass appraisal standard for the low credit/low down loans and cleaning them up and rehabbing for the first time home buyer with marginal credit etc..   

But part of this game is following the Pareto Principle and building in a margin of safety for the big-ticket items. 

The issue also is that taxes are so high, they’ll eat into any margin.

Anyone who is even slightly marginal will only get worse.

But if you are working with no margin for error and something goes wrong, you're in rolaids city and all the progress you made on your plan (and maybe even more) is suddenly at risk. 

Based on your rent range and your total expenses, I'd say you've got some slim margins if the expenses include what I've mentioned.