Most lower priced condo projects are not very healthy and why they are low priced.

At this point since it's after the fact while not totally correct; you may explore adding the missed asset/basis amount as a selling cost to just reduce your gain. 

She isn't thrilled that her refund is so low but I was able to give her an exact account of the revenue minus expenses and she thanked me.Far fewer phone calls.

To me at my current knowledge level, this deal only works if taking over the loan - to limit the out of pocket money to acquire the property since the outside reno and new septic would take up the bulk of rehab costs. 

The family viewed the house, loved it, and requested that I install satellite TV and add it to the costs, which I did.

Other significant variables are the cost of property management, internet, cleaning/maintenance, utilities and furnishing.

To be more specific about what i'm looking to do: My 1-2 year goal is to employ the BRRRR strategy with SFHs and Condos by buying distressed / highly undervalued properties that need work (preferably all-cash) in low crime areas with strong rental demand, renovate them within budget (again preferably all-cash) and get them rent ready before refinancing them at the highest ARV possible.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Can you give more details on your numbers, purchase prices, rehab costs, time to complete rehab, ARV, monthly rent?

Was going for the best cost-of funds (lower rate)