I believe by doing so I will learn a few things that I may use when analyzing new deals.Here are the numbers:Purchase price $85,000Downpayment $17,000Improvements $26,000Current monthly escrow $665 ($150 is principal)Current monthly rent     $1,100Utilities by tenantAssumed sales price $120,000Current mortgage        $83,000 (I re-financed at 3.5%, 30-year fixed to pay off my school loan a few years ago)I've been using the latter version for how much annual profit I make on my investment, as follows:$120,000-$83,000=$37,000 (in my mind I have $37,000 locked up in the property currently, ignoring sales fees)Annual net income=12 X ($1,100-$665) = $5,220 My return on investment = $5,220 / $37,000 = 14.10%Any thoughts on this?

The purpose of keeping the refi property rather than selling to get the funds for 1st flip would simply principal pay down equity position which is a slow process but if it's $110 a month principal payment I could realize $2600 in 2 years if I sell off property, correct?

Yes you will pay taxes on it as income but you can remove the principal amount of that plan any time you want without IRS penalty.

The only things you don't include are items specific to financing - essentially, Principal and Interest.  

How much principal do you pay every month?

Then you can double your principal it in 3-5 years if you go for a value-add deal.

See www.notecollection.comUse this company to collect payments from the tenant buyer sent to the note collection company, and they disburse funds for principal interest taxes and insuranceThe other issues you got to think about is what if creditors attached liens against the seller's house?

I own six properties, 3 in Maryland (including principal residence) and 3 in Ocala Fl.  

Many expenses are straightforward - maintenance, taxes, insurance, legal & accounting charges, interest (though, not the principal part of your payment), etc.  

After doing more research, I found that DORA states that a “Real estate broker” does not apply to any person acting personally acting as principal in acquiring or in negotiating to acquire any interest in real estate, or any person acting personally with respect to property owned or leased by that person....However, Article 1 of of the National Association of Realtors code of ethics states "Realtors®, when acting as principals in a real estate transaction, remain obligated by the duties imposed by the Code of Ethics." which includes all of the disclosure requirements.I found that the requirement to run all transactions thru the employing Brokerage comes from their rules that require them to monitor all transactions from employed brokers.