The rule of thumb is that you make your money when you buy the house; in other words, it is imperative that you buy the property for the right price so that you can make your repairs and face obstacles and still come out ahead in next to all circumstances. 

Sounds like you have added close to $100k of value, added $1,000 a month of tax smart cashflow to your bottom line, improved your personal quality of life, reduced your company's business expenses, and still have more upside.  

In our case improved operations provides the self-funding to make these investments possible, to the detriment of cash flow during the first 4-5 years, but we planned for that going in.  

FHA is strongly enforcing this rule.

When you work six days and take the seventh off, your physical, spiritual, emotional, mental and even your financial health will greatly improve – and so will your success rate.

As a personal rule of thumb, I will only work with local lenders that I've seen around for more than 1 year and have had a face to face conversation with.

If you buy at $60,000, rehab $7,500 (worst case) then your total investment comes out to be $66,500.Rent it out for $850.Then, using the 1% rule, which I find very effective in showing me if I will make a profit comes out to  $850/$66,500 = 1.3%.   

Also check with your board if they allow you to buy the other unit as investment and what are the subletting rules.

the 2% rule is just a rule that some people use to sort through many leads to find which are worth analyzing further.

Does anyone have a general rule for factoring in expenses for a 10+ unit building?