Your numbers work out to a final Cap Rate of 5.8%.

I'm doing Apartments and Lease Options and it seemed to work out for me.  

I live in an expensive market but the numbers work out if I can get it at a discount.

Since investors evaluate many projects which don’t work out for the contractor, the contractors usually become very reluctant to serve as your budgeting agent.I recommend finding one contractor you trust well and keep working with him/her.  

That way neither can walk away and they have to work out the issues themselves.

Doug, Rules of thumb (you will need to work out the math project to project):  1.

Hi how did this work out for you?

@Josh HansonI'll be curious to know what you decide and how the BRRRR deals work out for you, so I hope you update this thread from time to time with your decisions. 

Find a lender that can:Go to 50% DTI for agency loansCan use 75% of rental income on purchase and/or recent purchase that's not on a tax return If you are buying a good cash flow property and the lender can do these two basic things, then the purchase should work out.

Denver's not an easy place to find deals with enough margin to work out.