This creates a negative initial position.

Eventually we upped the budget to get something we would absolutely love even if it was slightly cash flow negative.

You can also sell them on sites like paperstac, debexpert or others as well as brokers like Mission Capital, Rams or Phoenix.Depending on quality of paper and interest rate will determine sales price - also I would say self servicing can have a negative impact on the sales price as the major players in the space are not fond of self servicing. 

If you are buying an SFR for 75k, put 175k into the deal (total cost is 250k) and it appraises for 220k, you are negative 30k before any loans are considered.

Rehab costs and  are key parts of evaluating deals, so it's great that you're diving into these concepts early.For rehab costs, creating a rough estimate starts with understanding the scope of work and local pricing for materials and labor.

The key is to not have negative cash flow.

Second, there's a legal concept called "unjust enrichment."

If you meant the company specifically and not just the concept of pad splitting, be sure they are available in your area.

Should i buy a property that negatively cash flows?

We need to ensure that residents are not negatively impacted when selling properties.