But for me, it separates the cream from the crop...

If the numbers are truly close, there are always a few ways to shave some dollars off your DTI. 

Rent - $6,700Payment - $4894Note is $680,000 at 7% over 25 yearsWould you suggest trying to shave off around 10 years paying additional each month?

When I see multis come up outside of the city proper they are almost always priced high, more for an owner-occupant who wants to shave something off of his/her mortgage than for investors looking for cash flow.  

Your project manager should not be focused on scoping the rehab at one price only to seek out the lowest quality/price sub or have a good quality sub shave their price so he can work in more profit for himself.

As in the past, the cream will rise to the top.As always, just my opinion.

With that being said, if you can shave off 15% of the ARV, and still make money, you are in a safe spot.

Then you would shave another $5-10K off for your wholesale fee.

I think there are some things you can do to help shave some costs and increase profitability...1) Can you lower closing costs? 

Versus 1031 you Sell, then Buy. 1031’s have time limits on them.