Additionally, I did not see you include any Holding or closing costs in your data.  

I feel comfortable with basic work such as paint, floors, kitchen upgrades, and maybe adding a bedroom/bathroom with the help of a contractor.Here a rough example with figures I just made up:Purchase – 120kRehab – 15kARV – 170kForced appreciation on rehab – additional 35k or 233% of rehab costDoes this sound right or way off?

If i don't pay anything for the audit defense, then I do not have a deduction.Furthermore, if the CPA made an error that resulted in additional tax and interest/penalties, then I would pay the extra tax but expect the CPA to cover the interest/penalties.

Additionally, I'm assuming "paid deposit" is earnest money, or no?

The property will be obvious more attractive without additional fee charged to tenants.

We are planning on refinancing and paying off the loan and pulling out additional equity once completed. 

Here are some additional benefits it has over SD IRA:Great tax-shelter: contribution limits nearly 10 times higher than an IRA (up to $60K/yr)Exempt from UBIT on leveraged real estateGreater protection from creditors Ability to invest tax-free using Roth (post-tax) component Lower cost since there are no custodian, asset-based or transaction feesand more!!

Your tenants are staying with family so they are not accumulating additional hotel expense. 

Additionally, In the last few days, I have several other motivated seller leads coming in for great fixer up properties but I don’t want to dig to big of a hole before I get something earning income.

@Sunitha Alli in addition to the other's good comments.