You're not accounting for CapEx or managment, which are going to put you into the red.

But is that a red flag 🚩

If someone is offering you to invest in a deal at a first conversation, that should raise a red flag. 

Admittedly, this is a possible red flag...if anyone knows how to estimate an ARV in a situation like this, I’m all ears.— The $250 number is AFTER taxes and insurance (either being paid by her already in her current mortgage, or by me which I will roll into the $1300 monthly payment) and after landlord utilities.

Wondering if that's a red flag to run for the hills

Still, I wonder if $1.75 wasn't a bit bold.

To come on here and ask is just like going to the casino and letting all ride on black or red.

Further, the lender you're working with may not allow for you to finance your downpayment (debt do borrower and incur more debt is usually a red flag for lenders). 

They might issue a stop work (big red sign on your front door).

If I could have a legal way to qualify under the SEC rules it would cut through a lot of red tape and allow me access to many more deals without any extra hassle.