**Rental Income and Management** - Since your siblings pay rent that covers the mortgage, you have a buffer as long as they continue living there.

It's always important to over estimate expenses (to have a buffer for vacancy) to be on the safe side. 

Target Number:                                                                                                                    320,000                                                                                                                                    -64,000 or 20% (agent fee 6% 19,200, GC Fee ~ 25,000, Title/ Closing/Funding 19,800)             256,000 all in                                                                                                                        ~40,000 Profit                                                                                                                      216,000                                                                                                                                       -5% Buffer 205,200So what can be built for 200,000This puts the build size at 200k/120sqft or 1666.67 sqftIn my gut this still appears to be to much house even with 40k in projected profit. 

I use a 30-year mortgage (as a buffer vs 15 year).  

And there is zero equity buffer to protect your loan either, meaning the loan to value (LTV) is 100% which is super risky.I'm sure there are some that are confident in going this route because they know and trust the borrowers they gator lend to but people fail people they know and trust all the time -think divorce rates are low?

Would it be better to empty out the 2 bedroom and get it rehabbed asap, or collect some rent first as a buffer and give it a little bit of time?

We're lucky enough to have low rates and so we've got a buffer to drop prices. 

My preference is to get an average for the utilities, add a 10% buffer for tenants that use excess, and then split it by the number of units.Will the single person complain about being billed the same as a family of four?

Give yourself at least enough buffer to avoid worries about bouncing checks 1.

On the bright side, a lower LTV will decrease the risk of the project for you so it's a good buffer to have on your first deal